What is average collection period

Assignment Help Financial Management
Reference no: EM131558682

XYZ Company's credit terms are 1/2 net 29. The company estimates that 27% of the customers will take the cash discount. What is the average collection period?

Enter your answer rounded off to TWO decimal points.

Reference no: EM131558682

Questions Cloud

What is the amount of the collection float as of the end : The firm deposited two checks: one check for $1,801 and another check for $1,049. What is the amount of the collection float as of the end of the day?
What is the value of the floating rate portion of the swap : What is the value of the floating rate portion of the swap? what is the swap rate?
What would be value of the investment : What would be the value of the investment if the money is invested in U.S and Great Britain?
Assume is the same as the risk-free rate : Find the up-factor u and down-factor d = 1/u that satisfy E[S(1)] = 1 + µ?t. Assume µ is the same as the risk-free rate.
What is average collection period : XYZ Company's credit terms are 1/2 net 29. The company estimates that 27% of the customers will take the cash discount. What is the average collection period?
Does interest rate parity hold : Does Interest Rate Parity hold, and if not where would you borrow and where would you invest?
An indirect cost of bankruptcy is the loss of key employees : An indirect cost of bankruptcy is the loss of key employees.
Breakeven point in miles per year for the two alternatives : what is the breakeven point in miles per year for the two alternatives? On a graph plot the cost comparison as a function of miles per year.
Hybrid mutual funds invest in a combination : Hybrid Mutual Funds invest in a combination of

Reviews

Write a Review

Financial Management Questions & Answers

  Discuss the type of individual securities or mutual funds

Discuss the type of individual securities or mutual funds that you believe are suitable for an aggressive investor whose primary investment goal is capital accumulation over the longer term (say 10 years or more) and why. Now think about an investor ..

  Global technologys capital structure

Global Technology’s capital structure is as follows: Debt 50 % Preferred stock 35 Common equity 15 The aftertax cost of debt is 6.00 percent; the cost of preferred stock is 10.00 percent; and the cost of common equity (in the form of retained earning..

  Based on your knowledge of aggregate demand

The global economy in 2011 appears to be headed into a double-dip recession. Based on your knowledge of aggregate demand and aggregate supply, suggest the reasons and causes for the downward tailspin of the economy. Provide support for your response.

  What is the locals net profit margin

Local Co. has sales of $10.8 million and cost of sales of $6.2 million. What is the locals net profit margin?

  What will be its dividend payout ratio

Puckett Products is planning for $4.5 million in capital expenditures next year. Puckett's target capital structure consists of 70% debt and 30% equity. If net income next year is $1.4 million and Puckett follows a residual distribution policy with a..

  What interest rate must she earn on her investment

What interest rate must she earn on her investment to have $ 13,898.00 exactly two years from today?

  Disadvantages associated with floating exchange rate system

From the second case study, analyze the major advantages and disadvantages associated with a floating exchange rate system in Thailand.

  Opportunity requires an initial investment

Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $4,000 at the end of each of the next three years. The opportunity requires an initial investment of $1,000 plus an additional invest..

  Additional paid-in capital and surplus account

The 2011 balance sheet of Creation Paints Incorporated showed $550,000 in the common stock account and $3.5 million in the additional paid-in capital/surplus account. The 2012 balance sheet showed $675,000 in the common stock account and $4.2 million..

  Present worth analysis to compare renting vs. buying house

Use present worth analysis to compare renting vs. buying a house.

  The extended version of the percentage of sales method

The extended version of the percentage of sales method:

  Explain the purpose and nature of the budgeting process

Explain the purpose and nature of the budgeting process.

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