The firm to collect its accounts receivable

Assignment Help Financial Management
Reference no: EM131070749

ABC Company has annual sales of $310,954 and cost of goods sold of $198,600. The average accounts receivable balance is $104,720. How many days on average does it take the firm to collect its accounts receivable? Assume 365 days.

 

Reference no: EM131070749

Questions Cloud

Problem in the capital budgeting process : What are the problems with the IRR as a method for determining whether a project is viable? Note you need to address all the reasons that the IRR might have a problem in the capital budgeting process.
Growth and stock valuation consider firm : Changes in Growth and Stock Valuation Consider a firm that had been priced using a 8 percent growth rate and a 12 percent required rate. The firm recently paid a $2.00 dividend. The firm has just announced that because of a new joint venture, it will..
Companys average balance in accounts payable : ABC Company has a cash cycle of 10.11 days, an operating cycle of 22.16 days, and an average collection period of 7 days. The company reported cost of goods sold of $273,071. What is the company's average balance in Accounts Payable?
Assume interest payments are semi anual : Bond prices and interest rate changes a 7.75 percent coupon bond with 18 yr left to maturity is priced to offer a 7.25 percent yield to maturity. What will be the totoal return of the bond in percent. assume interest payments are semi anual?
The firm to collect its accounts receivable : ABC Company has annual sales of $310,954 and cost of goods sold of $198,600. The average accounts receivable balance is $104,720. How many days on average does it take the firm to collect its accounts receivable? Assume 365 days.
Planning to retirement : A man is planning to retire in 25 years. He wishes to deposit a regular amount every three months until he retires, so that, beginning one year following his retirement, he will receive annual payments of $80,000 for the next 15 years. How much must ..
What is the monthly payment for this purchase? : A house is priced at $125,000. A down payment of $25,000 has been made. Equal payment will be installed every month, so that the loan can be repaid in 10 years. The annual interest rate is 12.00%, compounded monthly. What is the monthly payment for t..
What is the monthly payment for this purchase : URGENT: A house is priced at $125,000. A down payment of $25,000 has been made. Equal payment will be installed every month, so that the loan can be repaid in 10 years. The annual interest rate is 12.00%, compounded monthly. What is the monthly payme..
Calculate degree of operating leverage : Calculate degree of operating leverage. New Era produces 155,000 hats per year, at a selling price of $30 per hat and a variable cost of $26 per hat. Fixed costs combing for a total of $420,000. Ignore both taxes and depreciation expenses. What is th..

Reviews

Write a Review

Financial Management Questions & Answers

  With no corresponding increase in current liabilities

Provo Corporation had cash revenues of $14,000,000, cash operating expenses of $5,000,000, and depreciation and amortization of $1,000,000 during 2015. The firm purchased $650,000 of equipment during the year while increasing its inventory by $300,00..

  Essentially means that preferences are entirely subjective

The old maxim De Gustibus Non Est Disputandum essentially means that preferences are entirely subjective, and should not be disputed. Consumers like what they like. Do you agree with this? Specifically, either support or argue against the notion that..

  Calculate the three costs on equity

The PMBA Corp (beta = 1.3) is trying to determine it cost of equity. You have been asked to give the cost of equity using a variety of methods. The methods to be used are the CAPM, and the DCF model. The risk free rate is 2.00%, and the risk premium ..

  What are the advantages and disadvantages of going public

Due to your education, skills you have learned, and hard work, you have successfully managed your fledgling start-up company to the point where you are seriously considering an Initial Public Offering (IPO). What are the purpose, role, and responsibi..

  Brazilian real hedging with futures-futures hedging strategy

The US dollar (USD) to Brazilian real (BRL) exchange rate was 0.5793 USD/ BRL on October 21, 2010. By January 17, 2011 it had moved to 0.5934 USD/ BRL. Over the same time-period, BRL 3-month futures had moved from 0.5826 USD/ BRL. Assume the maturity..

  What is the bank dicount yeild-bond equivalent yield

A treasury bill with 6 days to maturity is quoted at 99.012. What is the bank dicount yeild, the bond equivalent yield, and the effective annual return?

  Calculate the tax effect from the sale of the existing asset

Truth Dance Company, Inc., a manufacturer of dance and exercise apparel, is considering replacing an existing piece of equipment with a more sophisticated machine. Calculate the book value of the existing asset being replaced. Calculate the tax effec..

  Initiating a cash discount

Initiating a cash discount; a company is considering offering a 3% discount for payment within 15 days, the current average collection period is 60 days. Sales are 40,000 units and the selling price is $47 per unit. If the firms required rate of retu..

  Ratio of the macaulay duration to the macaulay convexity

Your company has a liability, which calls for a single payment of 1000 due in ten years, and it funds it with a one-year zero-coupon bond with a price of 200, and a twenty-year zero coupon bond with a price of 800. Current continuously compounded int..

  Example of which kind of historical information

The data on closing stock prices at the end of the year for all firms listed in S&P 500 is an example of which kind of historical information? The data on daily stock prices of all firms listed in S&P 500 for the last one year is an example of which ..

  Bond with the featurs

You own a bond with the following features: 5 years to maturity, face value of $1000, coupon rate of 4% (annual coupons) and yield to maturity of 8.9%. If you expect the yield to maturity to remain at 8.9%, what do you expect the price of the bond to..

  Future spot rate-what is his profit or loss per unit

Frank is an option speculator. He anticipates the Danish kroner to appreciate from its current level of $.19 to $.21. Currently, kroner call options are available with an exercise price of $.18 and a premium of $.02. Should Frank attempt to buy this ..

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