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
Sergeu [11.5K]
3 years ago
13

Gates Corp. has net income of $172,000, sales of $ 1,453,909, and an accounts receivable balance of $127,100. Assume that 100% p

ercent of sales are on credit. What is the days' sales in receivables?
Business
1 answer:
serious [3.7K]3 years ago
3 0

Answer:

Days' sales in receivables= 31.91 days

Explanation:

The day's sales in account receivable ratio is also called average collection period. It states the number of days on the average to collect a business's account receivable.

Days sales turnover is calculated by dividing total number of days in a year by the account recievables turnover ratio.

The formula for accounts receivable turnover ratio= Current credit sales received/ Accounts receivable balance

Accounts receivable turnover= 1,453,909/127,100

Accounts receivable turnover= 11.439

Assume a 365 day year

Days' sales in receivables= 365/Account receivable turnover

Days' sales in receivables= 365/11.439

Days' sales in receivables= 31.908~ 31.91 days

You might be interested in
Assume that the amount that you have to actually borrow for your ski and bike rental business mentioned in the previous question
s344n2d4d5 [400]

Answer:

4.65%

Explanation:

Data provided in the question:

Amount borrowed = $18,000

Discount Interest rate = 4%  = 0.04

Required compensating balance = 10%

Now,

Effective loan rate on Discount Loan with compensating balance is given as

⇒ [ ( Interest rate ) ÷ (1- interest %-Compensating balance%) ] × 100%

⇒ [ 4% ÷ ( 1 - 4% - 10%) ] × 100%

⇒ [ 0.04 ÷ ( 1 - 0.04 - 0.10 ) ] × 100%

⇒ [ 0.04 ÷ 0.86 ] × 100%

⇒ 4.65%

3 0
3 years ago
"Tom's Tool Factory is an investment center and is responsible for all of its net income and the use of its assets. This year, t
fenix001 [56]

Answer:

A.57.9%

Explanation:

Return on Assets (ROA) measures how effective a business generates income from its total assets. It is calculated from the net income and total assets using the following formula;

Return on assets (ROA ) = Net income / Total assets

Net income = 275,000

Total assets = 475,000

ROA = 275,000 / 475,000

= 0.5789 or 57.9%

8 0
3 years ago
nformation concerning Johnston Co.'s direct materials costs is as follows: Standard price per pound $ 6.45 Actual quantity purch
Dmitry [639]

Answer:

f. $615

Explanation:

The standard cost for 2,850 pounds is $18,328.5 (=$6.45 * 2,850)

Materials purchase-price variance–favourable $855; it means standard price is higher and actual material price. Then we have actual cost for purchased 2,850 pounds is $17,527.5 (=$18,328.5-$855)

Then the actual price per pound $6.15 (=$17,527.5/2,850)

The difference between purchased and actual quantity used is 100 pounds (= 2,850 pounds - 2,750 pounds)

The direct materials usage variance for the period is $650 (= $6.15 * 100 pounds)

4 0
3 years ago
What term is used by strength coaches to pre-plan training program around events or competitions?
galina1969 [7]
Mentoring and encouraging
4 0
4 years ago
Lezos LLC, a chain of international restaurants, has operations in more than 50 countries around the world. The company has a pr
Vika [28.1K]

Answer:

c. financial resources

Explanation:

Based on the information provided it can be said that the most likely reason for the success of Lezos in international markets are their financial resources. That is because (like mentioned in the question) they are able to keep supporting these projects financially for as much time as they need in order for them to actually become successful. Therefore there is no other factor in play except for money.

8 0
4 years ago
Read 2 more answers
Other questions:
  • Which of the following is a challenge that could come with buying an existing business
    10·1 answer
  • John and Jane both love chocolate and beer. John prefers a can beer to a box of chocolate. Jane prefers a box of chocolate to a
    8·1 answer
  • The SUV division of a major automobile corporation decides to release a new model a month ahead of its stated release and notifi
    14·1 answer
  • A risk exposure is defined as the impact to the organization when a situation transpires. The widely accepted formula for calcul
    8·1 answer
  • The Grameen Bank pioneered the idea of microfinance and microlending in the early 1980s. Many microlending operations today use
    13·1 answer
  • A landowner in fee simple signed a promissory note for $10,000 to a bank, and secured the note by a mortgage of her land to the
    7·1 answer
  • Suppose the market for smoothies is supplied by 11 competitors. Their respective market shares are 40%, 20%, 10%, 5%, 5%, 5%, 4%
    15·1 answer
  • Alvin had two jobs last year, and he received two W-2 forms. On the first W-2 form, the figure in box 1 was $14,389.26, while on
    13·1 answer
  • Which factor would influence the premiums of health insurance?
    11·2 answers
  • Identify the simplifying assumptions usually made in net present value analysis.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!