What is the company days sales in receivables

Assignment Help Financial Management

Reference no: EM131178720

A company has net income of $181,000, a profit margin of 8.1 percent, and an accounts receivable balance of $120,370. Assuming 70 percent of sales are on credit, what is the company’s days’ sales in receivables? (Use 365 days a year. Do not round intermediate calculation and round your final answer to 2 decimal places. (e.g., 32.16))

Reference no: EM131178720

Questions Cloud

Cartesian coordiantes to spherical coordinates : How do you convert cartesian coordiantes to spherical coordinates?

How many hours does he have to work : Dave works at the mall part-time for $9 per hour and notices that 20% of his check is deducted for taxes. If he wants to take home at least $200 per week, how many hours does he have to work?

Capital budge-influence firm decision to use payback : A firm has a $100 million capital budge. It is considering two projects that each cost $100 million. Project A has an IRR of 20 percent, and NPV of $9 million, and will be terminated after 1 year at a profit of $20 million, resulting in an immediate ..

Government-funded pension plan : A junior employee, who just turned 25, decides to set up a personal retirement fund to supplement her government-funded pension plan during her first 20 years of retirement. She wants to have an annual income of $50,000 starting when she turns 65 and..

What is the company days sales in receivables : A company has net income of $181,000, a profit margin of 8.1 percent, and an accounts receivable balance of $120,370. Assuming 70 percent of sales are on credit, what is the company’s days’ sales in receivables?

What would be the total market value of the firm : The company has no growth opportunities (g = 0), so the company pays out all of its earnings as dividends (EPS = DPS). The consultant believes that if the company moves to a capital structure financed with 20 percent debt and 80 percent equity (based..

Prepare cash budget for saginaw concrete : Saginaw Concrete is attempting to estimate their financial needs for the first 6 months of 2010. The credit department estimates the collections as follows: collections within the month of sale, 20 percent; collections the month following the sale, 4..

Recycle paper to save the environment : Paper is the requirement of daily need in today's world. Paper is made from the pulp of wood. And for this reason every year millions of trees are cut around the world to fulfill our demand for paper. Recycling paper is the only method to save trees ..

What conclusion do these percentage returns imply : Investor A makes a cash purchase of 100 shares of AB&C common stock for $55 a share. Investor B also buys 100 shares of AB&C but uses margin. Each holds the stock for one year, during which dividends of $5 a share are distributed. If the margin requi..

User Account

All Pages