Insurance can help you:

Ingraham Inc. currently has $820,000 in accounts receivable, and its days sales outstanding (DSO) is 54 days. It wants to reduce

Oksanka [162]

Answer: 451759.29

Explanation:

To solve the question, we need to calculate the current sales. This will be calculated by using the formula:

DSO = (Account receivable × 365) / Sales

54 = 820000 × 365 / Sales

Sales = 820000 × 365 / 54

Sales = 5542593

After the new policy, the expected sales will be:

= 5542593 × (1 - 15%)

= 5542593 × (1 - 0.15)

= 5542593 × 0.85

= 4711204.5

The level of accounts receivable following the change will be:

DSO = (Account receivable × 365) / Sales

35 = Account receivable × 365 / 4711204.5

Account receivable = 35 × 4711204.5 / 365

Account receivable = 451759.29

8 0

3 years ago

On January 1, 2020, Pharoah Company, a calendar-year company, issued $1680000 of notes payable, of which $420000 is due on Janua

irinina [24]

Answer:

Option C.

Current liabilities, $420,000;

Long-term Debt, $1,260,000.

Explanation:

The reason is that the amount that will be paid within the next 12 is current liabilities, so the amount $420,000 is current liability as it will be paid within the next 12 months. So the remainder of the amount that is not payable in the next 12 months is long term liability.

Long Term Liability = $1,680,000 Total Payable Amount - $420,000 Current Liability

Long Term Liability = $1,260,000

7 0

3 years ago

For insight into a government agency's understanding of the laws it administers, one should consult:

AfilCa [17]

Answer:

The agency's interpretive rules.

Explanation:

An interpretive rule can be defined as a document issued by an agency so as to help expound or clarify existing administrative laws, regulations and statutes in the public domain.

Basically, an interpretive rule is not required to meet the minimum requirements or criteria specified by the Administrative Procedure Act (APA). Also, an interpretive rule is not considered as a force of law because it is not binding on the general public.

Hence, for insight into a government agency's understanding of the laws it administers, one should consult the agency's interpretive rules for an explanation on the law and regulations it promulgated,

4 0

3 years ago

The Optima Mutual Fund has an expected return of 20%, and a volatility of 20%. Optima claims that no other portfolio offers a hi

mel-nik [20]

Answer:

(a) 0.75

(b) 0.2

(c) 0.6

Explanation:

(a)Calculating Sharpe ratio-

Given-

Expected return = 20%,

Risk free rate of return = 5%,

Volatility = 20%

Sharpe ratio = (Mean portfolio return - Risk free return) ÷ Standard deviation of portfolio

Sharpe Ratio = (20% - 5%) ÷ 20%

= 0.75

(b) Given-

Standard deviation = 40%,

Portfolio return= 11%,

Risk free return will remain same as 5%

Sharpe Ratio of Ebay = (11% - 5%) ÷ 40%

Sharpe Ratio of Ebay = 0.15

Correlation of Ebay with Optima fund:

= Sharpe ratio of Ebay ÷ Sharpe ratio of Optima fund

= 0.15 ÷ 0.75

= 0.2

(c) Correlation of Sub-Optima fund with Optima fund = 80%,

Sharpe ratio of Optima = 0.75

Correlation of Sub-Optima fund with Optima fund:

= Sharpe ratio of Sub-Optima fund ÷ Sharpe ratio of Optima fund

0.80 = Sharpe ratio of Sub-Optima fund ÷ 0.75

Sharpe ratio of Sub-Optima fund = 0.80 × 0.75

= 0.6

6 0

3 years ago

Regardless of whether you are looking through the microeconomics microscope or the macroeconomics telescope, the fundamental sub

VARVARA [1.3K]

Answer:

Regardless of whether you are looking through the microeconomics microscope or the macroeconomics telescope, the fundamental subject material of the interconnected economy does not change.

Explanation:

Yes, regardless of whether we are looking through the microeconomics microscope or the macroeconomics telescope, the fundamental subject material of the interconnected economy does not change. Because there is very strong interlink between the elements of an economy and there are interlinked quite perfectly as well. As we have two main parts of an economy which are organisations and households, which have coordination in three different types of markets which are goods and services, labor and financial market. Organisations sell their products to the households. Money taken from household is taken by firms. Organisation needs to have people in order to make their products so the money flows to the labor market simultaneously as well. Organisations put their savings and profits whit the financial institutions and in this way money flows and all of these factors are interlinked with one another.

4 0

3 years ago