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Vinil7 [7]
4 years ago
15

"A firm has $400,000 in credit sales and $100,000 in accounts receivable. Compute accounts receivable turnover and average numbe

r of collection days. How do these numbers relate to the terms of 2/10 net/30?"
Business
1 answer:
erastova [34]4 years ago
7 0

Answer:

45 days

Explanation:

Data provided

Credit Sales = $400,000

Accounts receivable turnover ratio = Credit Sales ÷ Average Accounts Receivables

= $400,000 ÷ ($100,000 + 0) ÷ 2

= 8 times

Average number of collection days = 360 ÷ Accounts Receivable turnover ratio

= 360 ÷ 8

= 45 days

Therefore for computing the average number of collection days we simply divide accounts receivable turnover ratio  by 360.

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Under U.S. GAAP, if the carrying value of a fixed asset was $50,000, the undiscounted expected future cash flows was $55,000, th
ira [324]

Answer:

$0

Explanation:

According to US GAAP the reduction in the value of the asset due to a decrease in the fair value. It means when fair value of the asset is reduced than the book value of the asset.

Amortized Cost / Book value = $50,000

Market Value = $53,000

Discounted Value = $51,000

There is no Impairment loss on this asset as the fair market value is more than the book value of the asset.

7 0
3 years ago
Read 2 more answers
A non-governmental, not-for-profit organization held the following investments: Investment Cost Fair value (beginning of the yea
zysi [14]

Answer:

c. $24,850

Explanation:

A non-governmental, not-for-profit organization held the following investments: Investment Cost Fair value (beginning of the year) Fair value (end of the year) Stock A (100 shares) $50 per share $45 $51 Stock B (200 shares) $40 per share $41 $49 ; Bonds Cost $9,000 Fair value (beginning of the year) Fair value (end of the year)$10,000 $9,950

The amount that should be the total value of investments reported in the year-end statement of financial position? will be the fair value of the investments at the end of the year becaue investments by financial reporting standards are carried at fair values unlike physical assets carried at costs

Stock A = 100 Shares x fair value end of year of $51 = 5,100

Stock B = 200 Shares x fair value end of year of $49 = 9,800

Bond @ Fair value end of year...........................................= 9,950

Total............................................................................................$24,850

5 0
3 years ago
The Brainchild is a store that specializes in educational toys for children. In order to increase the probability of customers v
Viefleur [7K]

Options: decreasing an importance weight. increasing a performance belief. decreasing the performance belief for a competitive retailer. adding new benefits. focusing on all benefits.

Answer: ADDING NEW BENEFITS.

Explanation:Adding new benefits or improving existing benefits are ways used by Store or business organisations to attract new customers or to retain existing ones or improve its number of loyal customers.

Benefits are free services or gifts given, Brainchild has increased the benefits of buying from its store by offering discounts, gift wrapping, and free shipping,all these will attract more customers to its store and hence increase loyal customers and number of customers.

6 0
4 years ago
Katlyn Williams owns a company that makes specialized components for the aerospace industry. Her most important customer is a co
omeli [17]

Answer:

Need to accommodate the growth of a key customer.

Explanation:

In the given scenarios Katlyn is motivated to keep her company growing because her most important customer is a company that is growing at a rate of 33% per year.

To satisfy the customer needs for specialised components of aerospace equipment, Katlyn's company must also grow in output or they will not be able to satisfy the customer's need.

This demonstrates need to accommodate the growth of a key customer.

7 0
3 years ago
Read 2 more answers
If $ 9 comma 000 is invested in a certain business at the start of the​ year, the investor will receive $ 2 comma 700 at the end
laiz [17]

Answer:

NPV= 1,036.16

Explanation:

Giving the following information:

Initial investment= $9,000

Cash flows= $2,700 at the end of each of the next four years.

Interest rate= 3%

To calculate the net present value (NPV), we need to use the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

Cf1= 2,700/1.03= 2,621.36

Cf2= 2,700/1.03^2= 2,545

Cf3= 2,700/1.03^3= 2,470.88

Cf4= 2,700/1.03^4= 2,398.92

Total= 10,036.16

NPV= -9,000 + 10,036.16

NPV= 1,036.16

3 0
3 years ago
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