Was it smart of Cedric to avoid writing about his embarrassing lunchtime incident and wacky grandma?

Exercise 13-07 Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in mill

spin [16.1K]

Answer:

See below

Explanation:

Data given

Cash and cash equivalents $760 $77

Accounts receivables net $2,080 $1,890

Inventory $830 $810

Other current assets $440 $433

Total current assets $4,110 $3,210

Total current liabilities $2,100 $1,590

Net credit sales $8,258

Cost of goods sold $5,328

1. Current ratio = Current assets/Current liabilities

= 4,110/2,100

= 1.96

2. Accounts receivable turnover = Credit sales/Average accounts receivables

= 8,258÷ [(2,080+1,890)/2]

= 8,258 ÷ 1,985

= 4.16 times

3. Average collection period = Average accounts receivables/Credit sales × 365 days

= (1,985/8,258) × 365

= 87.7 days

4. Inventory turnover = Cost of goods sold/Average inventory

= 5,328/[830 + 810)/2]

= 5,328/820

= 6.5 times

5. Days in inventory = Average inventory/Cost of goods sold × 365

= (820/5,328) × 365

= 56.2 days

3 0

3 years ago

Ramon funds small businesses that he believes have the potential to grow large. when these companies are still in their initial

Delicious77 [7]

The fact that Ramon funds small businesses that he believes have the potential to grow large and when these companies are still in their initial stages and need investment, he buys their stocks at a low price and later sells them at higher prices when they are successful means that Ramon is a venture capitalist. The term venture capitalist in economics describes a person who invests in a business venture, providing capital for start-up or expansion.

8 0

3 years ago

Read 2 more answers

You just inherited a trust that will pay you $100,000 per year in perpetuity. However, the first payment will not occur for exac

allsm [11]

Answer:

PV= $620,921.32

Explanation:

Giving the following information:

Cash flow (Cf)= $100,000

Interest rate (i)= 7.25%

First, we need to calculate the value of the investment at the moment of the first payment (five years from now). To calculate the present value we need to use the following formula:

PV= Cf / i

PV= 100,000 / 0.1

PV= $1,000,000

Now, the value today:

PV= FV / (1 + i)^n

PV= 1,000,000 / (1.1^5)

PV= $620,921.32

8 0

3 years ago

Jax Recording Studio purchased $7,800 in electronic components from Music World. Jax signed a 60-day, 8% promissory note for $7,

AveGali [126]

Answer: Debit Notes Receivable 7,800

Sales(to record sales) 7,800

Explanation:

When a customer signs a promissory note in exchange for commodity then the entry to record sales is recorded by debiting notes receivable.

here, sales = $7,800 = Debit Notes Receivable

The entry to record the sales transaction would be

Debit Notes Receivable 7,800

Sales(to record sales) 7,800

3 0

3 years ago

Coccia Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 8 percent coupon

Gre4nikov [31]

Answer:

7.28%

Explanation:

For this question we use the RATE formula that is shown in the attachment below:

Provided that

Present value = $1,075

Assuming figure - Future value or Face value = $1,000

PMT = 1,000 × 8% ÷ 2 = $40

NPER = 20 years × 2 = 40 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this, the coupon rate is

= 3.64% × 2

= 7.28%

6 0

3 years ago