What is the firm avg collection period

Assignment Help Business Management
Reference no: EM131172587

Milwaukee surgical supplies, inc sells on terms of 3/10, net 30. Gross sales for the year are $1,200,000, and the collections department estimates that 30% of the customers pay on the tenth day and take discounts, 40% pay on the thiritieth day and the remaining 30% pay,on avg,40 days after the purchase. (Assume 360 days per year)

a. What is the firm's avg collection period?

b. What is the firm's current receivables balance?

c. What would be the firm's new receivables balance if Milwaukee Surgical toughened up on its collection policy with the result that all nondiscount customers paid on the 30th day?

d. Suppose that the firm's cost of carrying receivables was 8% annually. How much would the toughened credit policy save the firm in annual receivables carrying expense?(Assume that the entire amount of receivables had to be financed)

Reference no: EM131172587

Questions Cloud

Determine the change in the discount rate : Assume that for every 1 percentage-point decrease in the discount rate, banks borrow an additional $100. Determine the change in the discount rate required to achieve the planned change in the money supply.
Determine the required weight and angular position of mass : Determine the required weight and angular position of the balancing mass, which is to be located at r4 = 10 in. Show answers on a scale drawing of the rotor.
Define the elements of a legal contract using examples : Define the elements of a legal contract using examples from the scenario where applicable. Decide whether or not there was a contract for the purchase of the automobile.
What is the name of the independent auditor : Who is responsible for the preparation and fair presentation of these consolidated financial statements? What is the name of the independent auditor and what is their responsibility?
What is the firm avg collection period : a. What is the firm's avg collection period? b. What is the firm's current receivables balance?
True of capital as a determinant of economic growth : Which of the following are true of capital as a determinant of economic growth? Check all that apply.
Determine the dimensions of the box : Express the solution set of the given inequality in the interval notation and find and classify all the stationary points.
Determine the moment of inertia i of the ring : Determine the moment of inertia I of the ring about axis through its center of gravity .
Demand for real money balances is function of real income : Assume the demand for real money balances is a function of real income, only. Additionally, assume the money supply and real income are constant and assume we expect inflation to rise in the future. Based on these assumptions and the quantity equatio..

Reviews

Write a Review

Business Management Questions & Answers

  Signatures appeared at the bottom of a note

Negotiability. Michael Scotto borrowed $2,970 from Cindy Vinueza. Both of their signatures appeared at the bottom of a note that stated, "I Michael Scotto owe Cindy Vinueza $2,970

  Calculations simple presume that the annual capital cost

A brewery is seeing two potential production investments. In order to make the calculations simple presume that the annual capital cost is 10% of the total investment. At what assembly quantity these two investment are opportunities?

  Question related to disciplinary processthe primary purpose

question related to disciplinary processthe primary purpose of any corrective action plan is to improve performance. it

  What are the mandatory requirements of securing consent

What are the mandatory requirements of securing consent and how are they best documented? What strategies must the organization employ to secure informed consent? Why?

  Illustrate what are the major advantages of using evm

Illustrate what are the major advantages of using EVM as a project control mechanism? Illustrate what do you perceive are its disadvantages?

  A hr director of a fortune

HRMT415: Week #8 Paper: 6-8 page Paper Assignment overview and directions: You are writing this essay as a HR Director of a Fortune 500 Company. The corporation has is a multinational organization and based in the United States. You are being asked t..

  Determine the estimated probability

Determine the estimated probability that the restaurant Finer Diner will gross over $3000 on at least 4 out of 5 business days - Need it Records indicated the restaurant gross $3000 per day 6 out of 10 days.

  Life cycle model for alliances

What are the reasons for existence of alliances in a health care system

  Identify those ethical risks

In a 250-300 word post, answer the following questions: Are there different ethical risks an entrepreneur faces if entering a market in a developed country as compared to a market in an undeveloped country? Identify those ethical risks

  Perspectives on international trade

Please briefly outline the following perspectives on International Trade:

  Scientific and technological advancements in an industry

Do you see any flaw in arguing that organizations don't have the expertise to assess and make decisions about worthy social programs and therefore they should not get involved? Explain.

  Major components of an effective mission statement

1. Explain the relationship between strategic management and competitive advantage for firms. How can a firm achieve sustained competitive advantage? Apply these concepts to Barnes and Noble (what is their strategy and competitive advantage). (4+ ..

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