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chubhunter [2.5K]
3 years ago
10

The Bear Rug has sales of $811,000. The cost of goods sold is equal to 63 percent of sales. The beginning accounts receivable ba

lance is $41,000 and the ending accounts receivable balance is $38,000. How long on average does it take the firm to collect its receivables
Business
1 answer:
irina1246 [14]3 years ago
3 0

Answer:

The average collection period is 17.78 days.

Explanation:

In this question, we have to first compute the average receivable turnover ratio.  

The formula of the average receivable turnover ratio is shown below:

= Net credit sales ÷ Average accounts receivable

where,

Net credit sales are $811,000

And, the average accounts receivable equals to

= Beginning account receivable + ending accounts receivable ÷ 2

= $41,000 + $38,000 ÷ 2

= $39,500

So, the average receivable turnover ratio equals to

= $811,000 ÷ $39,500

= 20.53

Now, we calculate the average collection period, the formula is shown below

= Total Number of days in a year ÷ average receivable turnover ratio

= 365 ÷ 20.53

= 17.78 days.

Hence, the average collection period is 17.78 days.

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Eva8 [605]

Answer:

Cyclical unemployment is the loss of jobs due to a recession or downturn in an economy.

Explanation:

Cyclical unemployment is a type of unemployment. It is also known as Keynesian or deficient-demand unemployment. This type of unemployment occurs when the overall demand in an economy is not enough to provide jobs to the people who want to work. Cyclical unemployment is observed during the periods of slow economic growth or recession.

4 0
3 years ago
The per-unit standards for direct materials are 2 gallons at $4 per gallon. Last month, 12200 gallons of direct materials that a
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Answer:

$8,800 favourable

Explanation:

The computation of direct material quantity variance is seen below;

= Standard price × ( Standard quantity - Actual quantity)

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= $4 × 2,200 gallons

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8 0
3 years ago
Laws designed to promote competition and prevent the information of monopolies are known as _____ laws
Soloha48 [4]
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6 0
3 years ago
Read 2 more answers
The WPC Sports Company has noted that the size of individual "customer order" is normally distributed with a mean of $100 and st
nikdorinn [45]

Answer:

Standard error of the mean = 3

Explanation:

Given:

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7 0
3 years ago
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The correct answer is:  [C]: 
____________________________________________________
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____________________________________________________
<u>Note</u>:  Let us consider the other answer choices:
____________________________________________________
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This refers to a "need" — NOT a "demand" ; so we can rule out "Choice: [A] " .
____________________________________________________
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________________________________________________________</span>
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3 years ago
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