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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

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We will use the formula; A = Pe^(r*t)
Given;
A = 17,000
r = 5.1%
t = 14
Solution;A = Pe^(r*t)  Compounding continously
17,000 = Pe^(.051*14)
17,000/e^(.714) = P
      $8324.59  = P 
The money that has been invested at 5.1% interest and compounded contiounsly to have 17,000 after 14 years is $8324.59
8 0
3 years ago
Which of the following are assumed to remain unchanged along a given short run aggregate supply curve?
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I had to look for the options and here is my answer:

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5 0
3 years ago
According to generally accepted accounting principles (GAAP), revenue is recognized as income when:
bogdanovich [222]

Answer:

the transaction is complete and the goods or services are delivered.

Explanation:

According to generally accepted accounting principles (GAAP), the revenue should be recognized when the goods or services are delivered and the transaction is completed in all respects.  

The revenue recognition principle applies when the revenue is realized or earned whether cash is received or not plus it also follows the accrual basis of accounting. Here, realizable means that customer received the product but the payment is made at the later date

4 0
3 years ago
You are a marketing consultant and you have been hired to assist a client in deciding on a target marketing strategy that fits h
seraphim [82]

Answer:

Differentiated

Explanation:

A differentiated marketing strategy is the strategy where the company decided to provide the distinct offering to each kind of market but that should be targeted one. Each segment should be target in the way where the company gives the unique benefits for various kind of segments

Since in the given situation it is mentioned that there is the need to focus more than one market so here it should use the differentiated targeting strategy

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2 years ago
The Phoenix Corporation's fiscal year ends on December 31. Phoenix determines inventory quantity by a physical count of inventor
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Answer:

1. Merchandise held on consignment for Trout Creek Clothing.

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4. Goods shipped f.o.b. shipping point on December 28 that arrived at the customer's location on January 5.

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5. Phoenix had merchandise on consignment at Lisa's Markets, Inc.

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6. Goods purchased from a vendor shipped f.o.b. destination on December 27 that arrived on January 3.

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7. Freight charges on goods purchased in 3.

  • Included in the company's year-end inventory because freight costs under FOB shipping point are paid by the buyer.

3 0
3 years ago
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