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zhannawk [14.2K]
3 years ago
5

A firm has sales of $1.8 million, and 20 percent of the sales are for cash. The year-end accounts receivable balance is $225,000

. What is the average collection period? (Use a 360-day year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Business
1 answer:
Juliette [100K]3 years ago
7 0

Answer:

The average collection period is 56.25 days

Explanation:

The average collection period is the number of days' sales in receivables and calculated by using following formula:

The number of days' sales in receivables = 360/Accounts receivable turnover ratio

Accounts Receivable Turnover = Net Credit Sales/Accounts Receivable

Net Credit sales = Total Sales - the sales are for cash = $1,800,000 - 20% x $1,800,000 = $1,440,000

Accounts Receivable Turnover = $1,440,000/$225,000 = 6.4 times

The number of days' sales in receivables = 360/6.4 = 56.25 days

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Answer:

Company’s Cost of Goods Manufactured = $1,506,500

Explanation:

Use following formula to calculate cost of goods manufactured

Cost of Goods Manufacture = Direct Material cost + Direct labor cost + Manufacturing overhead + Work in process beginning balance - Work in process Ending balance

Cost of Goods Manufacture = $523,000 + $215,000 + $774,500 + $78,000 - $84,000

Cost of Goods Manufacture = $1,506,500

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pshichka [43]

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1 year ago
During the month of March, Munster Company's employees earned wages of $64,000. Withholdings related to these wages were $4,896
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Answer:

A) March 31 journal entries for wages expense and wages payable

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8 0
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You are the executive director of a nonprofit that runs an animal shelter and animal services, such as low-cost spay/neuter prog
EleoNora [17]

Answer:

Hold meeting with employees, volunteers and representatives of other local shelters and listen carefully as they brainstorm ideas.

Explanation:

A leader can be defined as an individual who motivates and inspires a group of people towards achieving a common goal. A good leader must possess the following characteristics:

1) A leader must be a good communicator, he/she must be able to deliver information to the group in an orderly manner.

2) A good leader must be able to inspires others.

3) A leader must lead with honesty.

4) A leader must be able to make good decisions.

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Kobotan [32]

Answer:

False

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In a corporation, decentralized planning means that some planning functions and decision making processes are delegated to lower level managers.

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