Computing average collection period

Assignment Help Finance Basics
Reference no: EM1310180

1) How much money should you pay into the account at the starting of each of 20 years to have $10,000 at the ending of the 20th year? Suppose that account pays 12% per year, and round to nearest $1.

Answer the following questions. When answering questions focus on these 3 items and explain it thoroughly the process: What is it? How does it work and Why does it matter? (What is the impact it has on the manager in the long run) Provide suitable examples of each situation.

i) What do you mean by saying debt is tax-favoured? Determine the benefit to the firm. What are the risks?

ii) What is the benefit to firm or organizing as corporation rather than a partnership?

iii) What is the average collection period (AKA Days Sales Outstanding)? How is it computed? Why is it significant to firm?

Reference no: EM1310180

Questions Cloud

Pursuit of all self interest in contract : With that said, is pursuit of ALL self interest in contract unethical? If not, at what point does it become unethical?
Determining the total book value of assets : Fixed assets can be sold today for= $23,300. Determine the total book value of assets of Alaris?
Estimated liability under warranties : During 2010, Markel had actual outlay of $48,000 for repairs under warranty. Markel employs the expense warranty accrual method-What amount should the company report for estimated liability under warranties at the end of 2010?
Purpose the balance sheet : Purpose the Income Statement for the year ended December 31, 2008 and  Prepare the Statement of Retained Earnings for the year and purpose the Balance Sheet at December 31, 2008.
Computing average collection period : What is the average collection period (AKA Days Sales Outstanding)? How is it computed? Why is it significant to firm?
Computation of contribution margin : Computation of contribution margin and Compute the amount of contribution margin that will be obtained per hour of labor time spent on each product
What is the maximum coefficient of kinetic friction : A box of books weighing 334 N is shoved across the floor by a force of 479 N exerted downward at an angle of 33° below the horizontal. What is the maximum coefficient of kinetic friction between the box and the floor that allows the box to move with ..
Creating balance sheet using mark-to-market method : Applying the Mark-to-market method, what will Novi Company show on its balance sheet at the end of 2006 to reflect its investment in Troy Company?
Objective questions operational management : Objective and Multiple choice questions based on Operational Management.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Conceptually most right capital budgeting method

What is your suggestion on this project according to conceptually most right capital budgeting method.

  Discuss on efficient markets hypothesis

Discuss on efficient markets hypothesis thus we can simply pick mutual funds at random Is this statement true or false

  Computation of effective annual yield bond value

Computation of effective annual yield bond value Assume that the 5-year bond paying $40 semi-annually is purchased at par

  Calculate the 6 monthly discount factors

Calculate the 6 monthly discount factors D(t) and the semi-annual zero coupon rates z(t), where t = 0.5, 1, 1.5, ., 9.5, 10. (2) Using the discount factors derived in (1), calculate the price of a 4½ year semi-annual coupon bond with an annual coupon..

  Computation of current value of shares of a given stock

Computation of current value of shares of a stock under given dividend growth rate and are expected to continue growing at this rate for the foreseeable future

  Computation of change in long term debt account

Computation of change in long term debt account balance and How much did the long term debt accounts of Hewlett Packard change

  What effect does rising risk have on value of the asset

All else being the same, what effect does rising risk have on value of the asset. Describe in light of your findings in part a.

  Prepare northern bell''s consolidated financial statements

Prepare Northern Bell's consolidated financial statements for December 31, 20X9, assuming that Golden Bell's functional currency is a)  the Canadian dollar, and  b)  the foreign currency unit.

  Calculation of cost of capital for western communications

Calculation of cost of capital for Western Communications

  Computation of dividend paid on common stock

Computation of Dividend paid on common stock under non-cumulative & cumulative schemes. Compute the dividends paid to each class of stock in each of those years assuming the preferred stock is non-cumulative. Use the matrix format listed be..

  Capital expenditure budget

Capital Expenditure Budget

  Business owners equity at commencement of year

If opportunity cost of capital is 14%, compute the present value of business owners' equity at commencement of year.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd