<span>To calculate the average collection period: the average accounts receivable balance divided by average credit sales per day.
With $1,000,000 per year, that is $2739.73 per day.
The average accounts receivable is ($80,000 + $60,000) / 2 = $70,000
$70,000 / $2,739.73 = 25.6 days</span>
Answer:
2.87%.
Explanation:
The total return, also refer to as Nominal return or Money return, is based on the nominal interest rate. For example, let's say that you deposited $100 into a bank account and the bank offers you an annual return of 11%. This 11% is the stated interest rate, it is known as nominal interest rate, and it is rate before taking into account the effect of inflation. When we deduct the effect of inflation from nominal rate, it gives us the real rate. Real rate reflects the Purchasing Power. The Fisher equation will be used to determine the expected inflation rate. The Fisher equation is as follows:
(1 + i ) = (1 + r) * (1 + h)
where
i = Nominal (Money) rate
r = Real rate
h = Inflation rate
Simply adjust the equation to calculate the inflation rate;
⇒ h = [(1 + i) / (1 + r)] - 1
OR h = [(1 + .11) / (1 + .079)] - 1 = 2.87%.
Answer and Explanation:
The classification of the following cost i.e. either product cost or period cost is
1. Period cost as it deals with the operating expense
2 Product cost as it directly linked with the product
3 Product cost as it directly linked with the product
4 Product cost as it directly linked with the product
5 Product cost as it directly linked with the product
6 Product cost as it directly linked with the product
7 Product cost as it directly linked with the product
8 period cost as it does not directly linked with the product
9 Product cost as it directly linked with the product
Answer:
Average customer life value
CLV = 1260
Explanation:
Fis, we will calcualteteh gross margin.
For that we need the revenue:
We will calculate the average revenue per year:
50% 30 dollars per month = 180
40% 50 dollars per month = 240
10% 80 dollars per month = 96
average annual revenue per customer: 516
now we ill calcualte the gross margin:
revenue 516
maintenance (45)
administrative (30)
gross margin 441
CLV = 1260
Answer:
In order to reduce the money supply by $1 billion, the FED needs to sell $100 million in securities.
Explanation:
The total effect on the money supply is given by: money withdrawn from the economy x money multiplier
money multiplier = 1 / required rate of return = 1 / 10% = 10
effect on the economy = -$100 million x 10 = -$1 billion
