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
creativ13 [48]
3 years ago
13

Consider the case of the Henderson Company.

Business
2 answers:
sashaice [31]3 years ago
7 0

Answer:

I) Days sales outstanding (DSO) for all customers?      48.7days

= (53*0.9)+(10*0.1) = 48.7 days

II) Net sales?                                                                  $166.600

The Net sales = Gross sales - sales allowance  

The discount amount due for the 10% discount customers = 2% of the 10% of 170 mn ==>  0.02 * 0.1 * 170 ===> 0.34 mn

∴ The Net sales = 17 - 0.34 mn = 16.66 mn

   Amount paid by discount customers?                     $13.600

Explanation:

I. General Credit Policy Information

  Credit stamps                                                               2/10 Net 30

  Days sales outstanding (DSO) for all customers    48.7days

  DSO for customers who take the discount (10%)      10days

  DSO for customers who forgo the discount (90%)    53days

II. Annual Credit Sales and Costs ($ millions)

  Gross sales                                                                 $170.000

  Net sales?                                                                   $166.600

  Amount paid by discount customers                      $13.600

  Amount paid by non discounted customers           $153.000

 Variable operating costs (82% of gross sales)         $139.40

 Bad debts                                                                    $0.0

 Credit evaluation & collection costs (10% of gross sales) $17.00

zhannawk [14.2K]3 years ago
3 0

Answer:Answer:

DSO for all customers is approx. 49days

DSO for customers who take the 10days discount offer is 10days

DSO for the 90% credit customers is 53days

ii annual credit sales is $170million and annual variable costs is $139.4million ( 82% of Gross sales) and discount paid to the 10 percentile customer is $340,000 (2% of $17Million)

iii. Credit Evaluation costs is $17million (10% of Gross sales)

iv. Bad debts is zero

V. AR balance for total customers at year end is $23Million

vi. AR balance for customers who took the discount at year end is $472,000

vii. AR balance for the 90% credit customers at year end is $22.5Million

Explanation:

DSO is calculated as Accounts receivable balance divided by Total credit sales multiplied by number of days in the period reviewed

In this question the DSO for either circumstances was provided as 10days and 53days respectively.

By interposing for the 90% customers (53days = x divided by $153million multiplied by 360days) x being the unknown AR is derived to be $22.5m

By interposing for the 10% customers (10days = x divided by $17million multiplied by 360days) x being the unknown AR is derived to be $472,000

Total AR is thus derived to be $23million and to ta DSO is 49days.

You might be interested in
On July 1, 2013, Farm Fresh Industries purchased a specialized delivery truck for $126,000. At the time, Farm Fresh estimated th
DochEvi [55]

Answer:

I think last option

6 0
3 years ago
Read 2 more answers
Jackson is the owner of a small pizzeria and draws a variety of competition—from other local restaurants offering pizza to the l
Nataly [62]

Answer:

The correct answer is letter "B": False.

Explanation:

Small businesses have an advantage in differentiating their products because they are closer to their clients and are often more flexible than their bigger competitors. The differentiation of innovative goods is often a key factor in small business success.

6 0
3 years ago
What does this sign mean?
sergiy2304 [10]

Answer:

Pedestrian : A person who walks on foot rather than in vehicles.

4 0
3 years ago
When looking to advertise a new business online, what is one of the major benefits of display ads?
Margarita [4]

Answer:

Ambitious Displaying adds that are eye catching are a major benefit to businesses. It allows you to make your mark on a users brain, when using display ads make sure to make yours stand out you dont want your advertisement to be one of the annoying ones that forces users to ignore it completely. Hope this helps!

8 0
2 years ago
Read 2 more answers
Which of the following statements about entrepreneurs is FALSE? A. Entrepreneurs are people who start a new business. B. Entrepr
9966 [12]

Answer:

C. Entrepreneurs aren’t exposed to any risk when starting a new business.

Explanation:

Entrepreneurs are the person who starts their own business and took a financial risk from the start. Entrepreneurs manage the activities on their own,  develop new ideas. and create the team for the benefit of the organization

Therefore, Entrepreneur exposed to the financial risk while starting their own business

hence, the correct option is C.

3 0
3 years ago
Other questions:
  • A company set-up a petty cash fund with $800. The disbursements are as follows:
    14·1 answer
  • uppose McKnight ​Corp.'s breakeven point is revenues of $ 1 comma 100 comma 000. Fixed costs are $ 660 comma 000. Requirements 1
    10·1 answer
  • Michael is maximizing utility by consuming three colas at $3 a piece and four hot dogs. The last cola gave him 300 units of util
    11·1 answer
  • Your university has decided to purchase new computers for all of the computer labs on campus. Typically, the purchasing agent ne
    6·1 answer
  • The American Civil Liberties Union was heavily funded by the Republican Party and Wall Street businessmen in the hopes of promot
    10·1 answer
  • Norris Company declared cash dividends of $60,000 during the year. Cash dividends payable were $20,000 at the beginning of the y
    8·1 answer
  • CakeCo, Inc. has three operating departments. Information about these departments is listed below. Maintenance is service depart
    9·1 answer
  • Because education has spillover benefits, the private market will: a. underallocate resources to education. b. overallocate reso
    12·1 answer
  • Professionals in_______ and investment pathway help companies connect with investors
    15·2 answers
  • The fact that you cannot isolate the production of a ride through a ride-share service such as uber or lyft from its consumption
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!