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soldier1979 [14.2K]
3 years ago
9

Breakwater Aquatics has a 45 day accounts receivable period. The estimated quarterly sales for this year, starting with the firs

t quarter, are $6,800, $7,100, $8,200, and $6,400, respectively. What is the accounts receivable balance at the beginning of the third quarter?
Business
1 answer:
LenaWriter [7]3 years ago
5 0

Answer:

The accounts receivable balance at the beginning of the third quarter is $3,550

Explanation:

For computing the account receivable balance, first, we have to compute the credit sale per day, and then multiply with the number of days

In mathematically,  

Credit sale per day = (Estimated second Quarter Sales) ÷ (accounts receivable period up to second quarter)

= $7,100 ÷ 90 days

= 78.89

Now the account receivable balance equals to

= Credit sales per day × accounts receivable period

= 78.89 days × 45 days

= $3550

Since the question is asking about the beginning of the third quarter so we considered second quarter sales

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Answer:

Product A $7.80

Explanation:

Calculation to Determine the most profitable product assuming the machine hours are the constraint.

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8 0
3 years ago
Room and Board has determined that $41,650 is the break-even level of earnings before interest and taxes for the two capital str
ipn [44]

Answer:

Interest rate on debt is 12.40%

Explanation:

Since break-even EBIT $41,650 , the equation of the two capital structure can be written as below:

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Generally EPS =EBIT/weighted average number of shares in an all equity financed structure like the first one

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$41,650/15,500=$41,650-($65000*interest rate)/12,500

by cross multiplication

41,650/15,500*12,500=41650-(65000*interest rate)

33588.71=41650-(65000*interest rate)

65000*interest rate=41650-33588.71

interest rate=(41650-33588.71)/65000

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6 0
3 years ago
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 5 percent. Thi
Nadya [2.5K]

Answer: The answers are given below

Explanation:

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From the question, we are told that the firm is earning $5.50 on every $50 invested by its founders. The percentage of return will now be:

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d. What will be the rate of return earned by firms in this industry once the industry reaches long-run equilibrium?

The rate of return earned by firms in this industry once the industry reaches long-run equilibrium will be 5% which is the normal rate of profit in the economy.

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Pluralistic ignorance efffect. How to apply in business administration? Give example
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