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Vinil7 [7]
3 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]3 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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At World Spice Market, Inc., the department manager uses a hand-held scanner to determine the quantity of each spice the store h
DiKsa [7]

Answer:

The correct answer is B. using technology to stay responsive to customer needs.

Explanation:

The use of technologies in companies is increasingly common in order to achieve an improvement in operation. This strategy allows having up-to-date information about any organizational area, as well as sales behavior in order to make investment decisions that allow the correct use of resources and the generation of profits. What is shown in the statement is that World Spice Market relies 100% on technology in order to determine the sales process, starting from the display case to the sale to the buyer.

6 0
3 years ago
Tyrone Northrup pays monthly rent of $1,240 for a one-bedroom apartment in a large city. He pays an extra monthly charge of $160
Leona [35]

Answer:

$18,910.00

Explanation:

Monthly rent $1240

Extra monthly charge $160

Electricity $90

Other utilities $860 per year

Insurance $170 per year

The monthly rent per year will be

=$1240 x 12

=$14,880

Parking charges per year

=$160 x 12

=$1,920

Electricity charges per year

=$90 x 12

=$1,080

Other utilities per year

=$860

Insurance per year

=$170

The annual cost will be

=$14,880 + $1,920 + $1,080 + $860 + $170

=$18,910.00

8 0
3 years ago
On March 1st, Mr. Smithe signed up for a fitness program at Fit Co. and paid $960 for the entire program upfront. The program in
vichka [17]

Answer:

Revenue - March = $160

Explanation:

The accrual principle in accounting states that the revenues for a period should match the expenses for that particular period and any revenue or expense should be recorded in the period to which it relates to. This means that the upfront fee received by Fit Co. is a liability and should not be recorded as a revenue until it is earned. So, by providing two sessions in the month of March, Fit Co. has earned revenue for 2 sessions out of the twelve. Thus, at the end of March, Fit Co. should record a revenue of,

Revenue - march = 960 * 2/12 = $160

8 0
3 years ago
An increase in input costs in the production of electric automobiles caused the price of electric automobiles to rise. Holding e
Tanzania [10]

Answer:

4. The demand for gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would increase.

Explanation:

Substitute goods are goods that can be used in place of each other.

If the price of electric automobiles rises, the automobile becomes more expensive for consumers. Consumers would reduce the quantity demanded of the electric automobile and shift its demand to gas powered automobiles.

As a result, the demand for gas automobiles increases and the equilibrium price would increase too.

I hope my answer helps you

8 0
3 years ago
In the local paper, a car dealership advertises a small used car for a great price and a low interest rate loan. When Patrice co
Shkiper50 [21]

Answer:

False advertising.

Explanation:

The car dealership is showing some advertising that caughts public atention because it offers lower rates and cheap prices for a product that it may not even exist. This is why is called false advertising, because at the time costumer arrives to the dealership asking for the car advertised, they try to sell a different product that is even more expensive.

5 0
3 years ago
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