Answer:
receivable turnover ration = 6
Explanation:
credit sales = 120000
Credit sales =As we know that: Receivables turnover ration = Net credit sales /Average account receivable.
= 120000/ 20000
= 6.
it indicates that company convert its receivable to cash 6 times that year.
Answer:
a.is an estimate of the length of time the receivables have been outstanding.
Explanation:
The average collection period can be calculated as follows: 365 days in a year divided by the accounts receivable turnover ratio.
Days sales uncollected = Average Account receivable/Net sales*365
A short collection period means prompt collection and better management of receivables. A longer collection period may negatively affect the short-term debt paying ability of the business in the eyes of management.
Answer:
The material cost per unit is not used in the computation of equivalent units of production.
The correct answer is D
Explanation:
The percentage of completion of inventory in progress. the number of units transferred out and the number of units stated and completed are used in the computation of equivalent units of production.
Answer:
14%
Explanation:
Net cash flow = $120,000
Annual Depreciation = [(Cost + Salvage value) / Useful life]
Annual Depreciation = [($400000 + 80000) / 8 years]
Annual Depreciation = $64,000
Net Income = Net cash flows - Annual Depreciation
Net Income = $56,000
Investment amount = $400,000
Accounting rate of return = Net Income / Investment amount
Accounting rate of return = $56,000 / $400,000
Accounting rate of return = 14%
Answer:
The dollar have to apprentice 32% against the peso.
Explanation:
According to the scenario, computation of the given data are as follow:-
We can calculate the Expected Future Exchange Return by using following formula:-
Expected Future Exchange Return= 1 - (1 + Mexican Interest Rate) ÷ ( 1 + US Interest Rate)
= 1 - ( 1 + 0.4) ÷ ( 1 + 0.06 )
= 1 - 1.32
= 0.32 or 32%
According to the Analysis, the dollar have to apprentice 32% against the peso for the given strategy to backfire