What is the maximum receivables balance partridge can

Assignment Help Accounting Basics
Reference no: EM13393022

Partridge Inc. sells about $45 million a year on credit. Good credit and collections performance in the industry results in a 35 day ACP.

a. What is the maximum receivables balance Partridge can tolerate and still receive a good rating with respect to credit and collections? (Hint: Write the equation defining ACP, treat the A/R balance as the unknown, substitute given or target values and solve).

b. If Partridge is now collecting an average receivable in 40 days, by how much will it have to lower the receivables balance to achieve a good rating?

Reference no: EM13393022

Questions Cloud

It also previously raised its price from 21 to 23 rivals : suppose that an oligopolistic is charging 21 per unit of output and selling 31 units each day. what is its daily total
Suppose that goodrich corporation is evaluating a capital : suppose that goodrich corporation is evaluating a capital expenditure proposal that has the following predicted cash
Deduce algebraically the quantities that must be produced : greener grass company ggc competes with its main rival better lawns and gardens blg in the supply and installation of
As a result more and more flights are delayed even beneath : airport delays occur because airport capacity is a scarce resource and airlines are scheduling more flights than that
What is the maximum receivables balance partridge can : partridge inc. sells about 45 million a year on credit. good credit and collections performance in the industry results
Explain the accounting method employed to commit the fraud : use the internet to research at least three 3 recent cases of fraud in the workplaceusing the internet searches above
What do you believe are the biggest benefits of going to : what do you believe are the greatest benefits of going to active directory domain services? what is the biggest
Whenever hines asked for the additional 20000 the customer : martin rupe worked as the manager of one of jas retail outlets. a customer came in and offered to buy all remaining
How much economic profit do expect that roberts company : roberts new way vacuum cleaner company is a newly started small business that produces vacuum cleaners and belongs to a

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is delta incom tax liability

What is Delta's incom tax liability assuming Carl withdraws none of the earnings from the C corporation? What is Carl's income tax liability? What is the total tax liability for the corporation and its shareholder?

  What is the difference between notes payable and

what is the difference between notes payable and notes

  Find out the total net income if all products are sold at

stahl inc. produces three separate products from a common process costing 100000. each of the products can be sold at

  What are debits and credits how are debits and credits

what are debits and credits? how are debits and credits employed to record business transactions? why do accountants

  Issue of preferred stock

Which of the following shareholder rights is most commonly enhanced in an issue of preferred stock?

  Tax advantages and disadvantages

The cost of the measure is to be paid by a special tax. Although most of the townspeople believe the sea aquarium is a good idea, there is disagreement about how the tax should be levied.

  Interest in a continuing partnership

Barry owns a 25% interest in a continuing partnership. the partnership distributes a $20,000 year-end cash bonus to all the partners. in a proportionate nonliquidating distribution, the partnership also distributed property (basis of $2,000; fair ..

  1 the information provided by financial reporting pertains

1. the information provided by financial reporting pertains toa. individual business enterprises rather than to

  Assume clients request that their tax return preparation

section 267 of the irc disallows a deduction on losses realized on the sale of property and a deduction for accrued

  What is the maximal return on investment

How much should the National Credit Union invest in municipal bondsso as to maximize its return on investment? What is the maximal return on investment?

  Specific identification inventory valuation method

Judy's Cars, Inc. sells collectible automobiles to consumers. Judy employs the specific identification inventory valuation method.

  Show the computation of expenses on the accrual basis

Expenses paid during 2008 were $80,000. Expenses paid in advance were $4,000 as at December 31, 2007, and the balance of expenses paid in advance was $8,000 as at December 31, 2008.

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