User Account

All Pages

What is the present value of every credit sales

Assignment Help Accounting Basics
Reference no: EM133040490

Question - LittleBiz sells all of its products on credit with terms of 3/30, net 60. A collection analysis reveals 30% of customers pay within the 1st month after sale; 55% pay within the 2nd month after sale and 10% pay within the 3rd month after sale. 5% are never collected. Assume that each month has 30 days and that the current cost of capital is 1% per month. What is the present value of every $1.00 of credit sales?

a. $0.9725

b. $0.9225

c. $0.9500

d. $0.9244

Reference no: EM133040490

Questions Cloud

overview of some aspect of the reading : A summary or a general discussion of key points and the reading's highlights - How the NSA betrayed the world's trust- time to act
Identify key audit objectives for client payroll function : Identify the key audit objectives for a client's payroll function. Comment on objectives related to tests of controls and substantive audit procedures
What is the bond current yield : You paid $1,200 for a corporate bond that has a 8.83 percent coupon rate. What is the bond's current yield
What is the regular price : Retail store release a gross profit of $62.67 if it sells an article at a margin of 32% of the ae lling price
What is the present value of every credit sales : Assume that each month has 30 days and that the current cost of capital is 1% per month. What is the present value of every $1.00 of credit sales
What is the probability of receiving no emails during hour : Problem: According to a 2017 survey conducted by the technology market research firm The Radicati Group, U.S. office workers receive an average of 121 emails pe
What is its expected return : Suppose the risk-free return is 3.7% and the market portfolio has an expected return of 10.1%. What is its expected return
Compute the correlation coefficient between x and y : An accountant for a large department store has the business objective of developing a model to analyze the relationship between the number of invoices (variable
How much should Fina receive upon liquidation : If the other assets are sold for P75,000, how much should Fina receive upon liquidation, assuming all the partners are solvent

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd