What is the value of its credit sales

Assignment Help Financial Management
Reference no: EM13806158

Mervyn's Fine Fashions has an average collection period of 50 days. The accounts receivable balance is $95,000. What is the value of its credit sales?

Reference no: EM13806158

Questions Cloud

What is effective rate of interest on this instalment loan : Lewis and Clark Camping Supplies Inc. is borrowing $51,000 from Western State Bank. The total interest is $15,700. The loan will be paid by making equal monthly payments for the next three years. What is the effective rate of interest on this instalm..
Compute the incremental income after taxes : Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $150,000 if credit is extended to these new customers. Of the new accounts receivable generated, 5% will prove to be..
What is the present value of this annuity stream : Your company just signed a 20-year lease for a new office. The lease requires that your firm pay $1,000 at the end of each month over the life of the lease. If the current annual rate is 9 percent, what is the present value of this annuity stream?
What is the present value of a lease on a warehouse : What is the present value of a lease on a warehouse, where the tenants have a lease that goes into perpetuity ad have agreed to pay $300 at the end of each month of the lease with an annual discount rate of 8 percent?
What is the value of its credit sales : Mervyn's Fine Fashions has an average collection period of 50 days. The accounts receivable balance is $95,000. What is the value of its credit sales?
What is the value of a share of a firms stock : What is the value of a share of a firm's stock when the firm is expected to pay a $2.80 per share dividend at the end of each year and the annual discount rate is 7.5 percent?
Profit margin and total asset turnover remain unchanged : The board of directors is dissatisfied with lasy year's ROE of 15%. if the profit margin and total asset turnover remain unchanged at 8% and 1.25 respectively, by how much must he total debt ratio (D/A) increase to achieve a 20% ROE?
What will be the value of the investment in two years : Your brother has asked you to help him with choosing an investment. He has $6,000 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 0.0300 annually with the interest being paid quarterly. What will be the..
Accumulate enough money for a down payment : Chin order to accumulate enough money for a down payment on a house, a couple deposits $313 per month into an account paying 3% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 6 years.

Reviews

Write a Review

Financial Management Questions & Answers

  Capital budgeting case

Your company is thinking about acquiring another corporation. You have two choices—the cost of each choice is $250,000. You cannot spend more than that, so acquiring both corporations is not an option. The following are your critical data:

  Based on the clientele effect

Based on the “clientele effect,” what would happen to a stock’s clientele if the dividend amount were abruptly doubled?

  Retirement fund-what is the monthly payment

If you want to have $1,250,000 at retirement in 32 years, how much will you have to save every two weeks at 10.5% to achieve the goal? If you have $1,000,000 at retirement, how much can you withdraw every month over the 25 years of your retirement if..

  The dauten toy corporation currently uses an injection

the dauten toy corporation currently uses an injection molding machine that was purchased 2 years ago.nbsp this machine

  What is the IRR of the investment

A large cow barn will cost $150,000 to build today and you figure it will add $18,000 per year to your after-tax cash flows for the next ten years. If the salvage value of the building is 50% after ten years and the cost of capital is 7%, what is the..

  You are working with a company selling building material to

you are working with a company selling building material to builders. you predict the quarterly purchases of customers

  Higher operating leverage

In its 2009 annual report, The Coca-Cola Company reported sales of $30.99 billion for fiscal year 2009 and $31.94 billion for fiscal year 2008. The company also reported operating income (roughly equivalent to EBIT) of $8.23 billion in 2009 and $8.45..

  Increase the real rate

The CPI index increased from 244.4 to 255.9 over the year and the real rate is 4.33%. If you had $450 in the bank in the beginning of the year, how much do you have now?

  Required return equal to the expected return

A stock is trading at $55 per share. The stock is expected to have a year-end dividend of $2 per share and expected to grow at same constant rate g throughout time. The stocks required rate of return is 16 %( assume the market is in equilibrium with ..

  1 financial ratio analysis is used by managers equity

1. financial ratio analysis is used by managers equity investors long-term creditors and short-term creditors. what is

  What is the monthly mortgage payment

Suppose you are buying your first house for $400,000 with 20% down payment. You have arranged to finance the remaining amount with a 30-year, monthly payment, amortized mortgage at nominal annual rate of 3.6%. What is the monthly mortgage payment?

  What would be your average annual rate of return

Two years after the bonds were issued, the going rate of interest on similar bonds fell to 8 percent. At what price would the bonds sell and If you bought the bond on the issue date at the issue price and expected to hold it until it matures on Dec..

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