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
Elodia [21]
3 years ago
7

Faldo Corp sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were $435,000, and its year-e

nd receivables were $60,000. If its DSO is less than the 45-day credit period, then customers are paying on time. Otherwise, they are paying late. By how much are customers paying early or late? Base your answer on this equation: DSO - Credit Period = Days early or late, and use a 365-day year when calculating the DSO. A positive answer indicates late payments, while a negative answer indicates early payments.
Business
1 answer:
Misha Larkins [42]3 years ago
4 0

Answer:

DSO is 50.34 days and late payment by 5.34 days

Explanation:

In this question, we use the day's sales outstanding formula which is shown below:

Days sales outstanding = (Accounts receivable ÷ Net credit Sales) × total number of days in a year

= ($60,000 ÷ $435,000) × 365 days

= 0.1379 × 365 days

= 50.34 days

Now, the customer paying early or late equals to

= DSO - Credit period

= 50.34 days - 45 days

= 5.34 days

The amount indicates a positive answer which reflects the late payment

You might be interested in
If the Budgetary fund balance account was debited when the budget was recorded in the City of Mustangville's General Fund, then:
Marysya12 [62]

Answer: a. appropriations exceed estimated revenues

Explanation:

A Budgetary Fund Balance is simply an account that Government agencies and Departments have to calculate the difference between expected inflows and Outflows for the period that a budget covers.

It is a temporary account with it's balance going to the General fund. If it is debited in the General fund then that means that Appropriations approved for the period are more than the revenues expected. The reverse is true.

6 0
3 years ago
Please list the reasons you would like to work for us and what skills you believe would allow you to excel at Regal Entertainmen
nignag [31]
I think for this question, you have, to be honest about what you can do and how you want to achieve them. This question can not be answered in general, but it should be replied to according to what you can and can not do. It is important that when you are doing the interview, you are confident and sincere towards your goal.
3 0
3 years ago
Xia Co. currently buys a component part for $5 per unit. Xia believes that making the part would require $2.25 per unit of direc
belka [17]

Answer:

Xia Co.

1-a. The relevant costs for Xia Co. to make or buy the part:

Direct materials         $2.25

Direct labor                   1.00

Incremental overhead 0.75

Total relevant cost   $4.00

1-b. Xia should make the part.  It will cost Xia $4.00 to make the component while it costs it $5.00 to buy.  It should therefore, make the component.

Explanation:

a) Data and Calculations:

Price of buying component = $5

Cost of making component:

Direct materials         $2.25

Direct labor                   1.00

Incremental overhead 0.75

Total relevant cost    $4.00

b) The relevant cost for making the component is $4.00.  The overhead cost based on 200% direct labor is not a relevant cost.  It is an allocated fixed cost and must be incurred whatever decision is taken.  By making the component, Xia Co. will be netting in a unit contribution of $1 ($5.00 - $4.00) with the alternative of buying.

8 0
3 years ago
Managers and subordinates jointly setting subordinate objectives is the _____ step in management by objectives.
Genrish500 [490]

Answer:

first

Explanation:

5 0
2 years ago
A provider of oil for home heating systems is offering $100 off its first delivery to new customers. This is an example of which
Radda [10]

Answer:

b. Free gift with purchase

Explanation:

The promotion tactic that the provider is trying to use is a Free gift with purchase. This is because by making your first every purchase the company is basically gifting you a certain amount of money through a discount of your purchasing total. Companies tend to do this in order to attract customers through the enticement of free money or products/gifts. They are able to do this because a single purchase will make them more profit than they are wasting on the gift and can lead to recurring customers.

7 0
3 years ago
Other questions:
  • Eaton Tires manufactures tires for dune buggies and has two different products, nubby tires and smooth tires. The company produc
    13·1 answer
  • If a university decreases the price of tickets to football games to collect more revenue, it is assuming that the demand for tic
    14·1 answer
  • You want to see how raising your client's target cost-per-acquisition (cpa) might affect his ad performance. which tool could he
    7·1 answer
  • When p = $5, the quantity demanded of a good is 30 units, and the quantity supplied of the good is 50 units. For every $1 decrea
    12·1 answer
  • Consider a hypothetical economy where there are no taxes and no international trade. households spend $0.80 of each additional d
    9·1 answer
  • This is a graphic representation of the quantity producers are willing to produce at different prices.
    6·1 answer
  • Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and uncollectible accou
    11·1 answer
  • A service is usually offered as part of a bundled package of services with a core service and one or more ____ services.suppleme
    11·1 answer
  • How do life expectancy at birth and political freedom change the relative ranking of living standards that real GDP per person​
    9·1 answer
  • QUESTION 9 of 10: You have laid out your pricing plan at $185 for a bounce party for 8 kids; your competitor is at $155. A poten
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!