1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
enyata [817]
2 years ago
14

A company has net income of $187,000, a profit margin of 8.6 percent, and an accounts receivable balance of $126,370. Assuming 6

0 percent of sales are on credit, what is the company’s days’ sales in receivables?
Business
1 answer:
NARA [144]2 years ago
4 0

Answer:

35.35  days

Explanation:

For the computation of company’s days’ sales in receivable first we do the following calculations

As we know that

Profit margin = Net income ÷ Sales

0.086 = 187,000 ÷ Sales

Sales = 2,174,418.605

So,

Credit sales = Sales × Sales percentage

= 2,174,418.605 × 0.6

= 1,304,651.163

Receivables turnover ratio = Credit sales ÷ Receivables

= 1,304,651.163 ÷ 126,370

= 10.3241

Now

Days sales in receivables = 365 ÷ Receivables turnover

= 365 ÷ 10.3241

= 35.35 days

You might be interested in
When you are shopping for a loan, the __________ is the important rate to compare.
MrRa [10]
When you are shopping for a loan, the ANNUAL PERCENTAGE RATE is the important rate to compare. This is because, comparing the annual percentage rate is the best way to accurately determine the loan that will cost you more in the long run.
7 0
3 years ago
Which of the following statements about the income statement is false? a. The single-step format groups all income items togethe
Sophie [7]

Answer:

The statement which is false is D) .

Explanation:

Income statement helps in assessing the current and past performance of the company, it also helps in predicting the future performance and in assessing the risk present in future in obtaining cash flows. Income statement are prepared through two methods either single step format ( which is used by sole proprietor and partnership firms ) or multi step format ( used by corporations ) .

In the single step format , all the income items are group together and are subtracted from the total cost, while in multi step format , a company breaks all the sources from where the revenues and cost have come, it is used to take out various measures like gross profit, operating profit etc.

A common size statement is one of the type of income statement where each account item is represented as a percentage of total sales value.

Option D is false because discounted operations and extraordinary transactions appear on both the single step and multi step format , these transactions are written as written as footnote below the statement.

5 0
3 years ago
What does it mean to have liability for a company
barxatty [35]
It Means if a worker or anyone gets hurt while working or doing something with your company, you need to pay his debts. 
6 0
3 years ago
Read 2 more answers
(bank deregulation some economists argue that deregulating the interest rates that could be paid on deposits combined with depos
muminat
Base on my research this type of argument is baseless but it depends on the 100% free enterprise market system. With this system, the government doesn't have regulatory powers to protect the interest of the consumers from the financial institutions. In a situation that without the interest rate modulation, the rate charged on loans could be 40% while the rate paid on savings could be 1%. If this happens the financial institutions will not have to pay FDIC insurance to ensure the solvency of the overall system. 
3 0
2 years ago
When is it okay to time out<br> someone? In Twitch
VARVARA [1.3K]
When that person spams I guess
3 0
2 years ago
Other questions:
  • When preparing government-wide financial statements at the end of the fiscal year, Meen County recorded an adjusting entry for s
    15·1 answer
  • A good leader will have followers who_____.
    9·2 answers
  • Which one of the following is a source of cash?A. decrease in inventoryB. increase in accounts receivableC. decrease in accounts
    7·2 answers
  • Mr. Smith at Acme Production, Inc. is trying to determine the true economic value (TEV) for a new computerized machine. This mac
    11·1 answer
  • In her career exploration class alternate side that she likes being an airline pilot now she's in the process of research and co
    7·2 answers
  • Major limitations of the balance sheet include all of the following except: it necessarily omits many items that are of financia
    13·1 answer
  • Amherst City provides a defined benefit pension plan for employees of the city electric utility, an enterprise fund. Assume that
    8·1 answer
  • A hockey team plays in an arena with a seating capacity of 15 000 spectators. With ticket prices set at $12, average attendance
    15·1 answer
  • (14 points) A financial analyst determines that Cyclone Company has $54 million of interest bearing debt outstanding and 3,800,0
    10·1 answer
  • When the marketing research problem is not clearly defined, a researcher will likely engage in ________ research.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!