1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
balu736 [363]
3 years ago
6

Cromley Corporation reports annual sales of $1,800,000. Its accounts receivable throughout the year averaged $150,000. a. Comput

e the company’s accounts receivable turnover rate. b. Compute the average days outstanding of the company’s accounts receivable.
Business
1 answer:
Mandarinka [93]3 years ago
6 0

Answer:

a. accounts receivable turnover rate is 12 times

b. Average days sales outstanding is 30 days

Explanation:

Computation of accounts receivable turnover rate

The accounts receivable turnover rate is determined by dividing the credit sales with the average receivables.

Credit Sales                     = $ 1,800,000

Average Receivables      = $    150,000

Receivables Turnover rate = $ 1,800,000/ $ 150,000 = 12 times

Computation of Average Days outstanding

Average days outstanding is computed by dividing the annual credit sales by 365 and using that as a divisor with the average receivables

Annual Credit Sales                     = $ 1,800,000

No of days                                                 365

Average daily credit sales  = $ 1,800.000/365 = $ 4,931.50

No of days sales = Average receivables/ Average daily credit sales

= $ 150,000/ $ 4,931.5 = 30.4 days rounded to 30 days

You might be interested in
Why is accounting a service industry?
Y_Kistochka [10]
Hi there.

I recently learned in Social Studies that services are usually intangible services. They have value, but you cannot physically touch them.

I'm also using the process of elimination. With that, I give you my best guess:


A. Because it provides support but no tangible goods.

Hope this works out for ya!


3 0
3 years ago
Read 2 more answers
In collaborative problem solving, it is important for the initiator to:
Solnce55 [7]

Answer:

The correct answer is B

Explanation:

Collaborative Problem Solving is the tool or a technique which is used for solving the problems and it makes the explicit respond.

The initiator is the person who initiates the response in the problem in order to solve the problems.

So, the vital as well as primary thing for the initiator is to avoid making the evaluative or measured conclusions as well as attribute the motives or purpose to the respondent, whose query it is.

3 0
3 years ago
When does the price of an item increase?
kirza4 [7]

Answer:

WHEN TAXES GET HIGH

Explanation:

ZASXSXSXSXSSXSXSXSXSX

7 0
2 years ago
Read 2 more answers
Mike has a car accident and Maria saves his life. To show his appreciation, Mike gives Maria a life estate in one of the homes h
jok3333 [9.3K]

Answer:

Jackie owns the property until Maria dies

Explanation:

In this specific scenario, Jackie owns the property until Maria dies. That is because, in common law and statutory law, a life estate also known as life tenancy is defined as the ownership of land for the duration of a person's life. Therefore since Mike granted life estate to Maria and not Jackie, the land is legally Maria's to do as she wishes up until the moment of her death. Once this comes to pass the land ownership is returned to Mike.

8 0
3 years ago
Question 23 of 40
aivan3 [116]
Answer: i think it’s C
4 0
3 years ago
Other questions:
  • If the marginal benefit of one more unit of a public good is $500 for Sam and $300 for Alex, the social benefit of one more unit
    6·1 answer
  • In the field of quality control, the science of statistics is often used to determine if a process is "out of control". Suppose
    15·1 answer
  • When an administrator at a local hospital prepares a series of charts and graphs pertaining to the patients that have stayed at
    7·1 answer
  • A purchaser of the assets of a business must allocate the purchase price to the individual assets in accordance with the written
    8·1 answer
  • On July 1, Aloha Co. exercises a call option that requires Aloha to pay $408,000 for its outstanding bonds that have a carrying
    5·1 answer
  • Dowd, Elgar, Frost, and Grant formed a general partnership. Their written partnership agreement provided that the profits would
    15·1 answer
  • 4. The three NIMS guiding principles are:
    13·1 answer
  • Match the following terms to the appropriate definition (or partial definition). Each definition is used once."Definltlon (or Part
    5·1 answer
  • Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:
    10·1 answer
  • A sales associate listed a condo for $205,000. A sales associate from a competing office called the listing associate to inform
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!