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Vinil7 [7]
4 years ago
9

Faldo Corp sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were $425,000, and its year-e

nd receivables were $60,000. If its DSO is less than the 45-day credit period, then customers are paying on time. Otherwise, they are paying late. By how much are customers paying early or late? Base your answer on this equation: DSO – Credit Period = Days early or late, and use a 365-day year when calculating the DSO. A positive answer indicates late payments, while a negative answer indicates early payments. Assume all sales to be on credit. Do not round your intermediate calculations.
a. 5.16
b. 8.10
c. 6.20
d. 6.53
e. 6.73
Business
1 answer:
scZoUnD [109]4 years ago
6 0

Answer:

d) 6.53 days late as the days sales outstanding are longer than the 45-days credit given by the company

Explanation:

A/R turnover ratio

\frac{sales}{Accounts \: receivables}

\frac{425,000}{60,000} = 7.0833

days sales oustanding:

\frac{365}{A/R \: turnover}

\frac{365}{7.08333} = 51.53 \: days

45 - 51.53 = 6.53

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6 0
4 years ago
in 2001 an outbreak of hoof-and-mouth disease in europe led to the burning of millions of cattle carcasses. discuss the demand a
denis23 [38]

Answer:

High demand

Low supply

High prices

Explanation:

The demand and supply of products, goods and services is heavily dependent on several factors ranging from economic, health and social factors. Disease and viral outbreaks have devastating effects on the market forces of demand and supply which in most cases will impact the market negatively with characteristically high prices and scarcity of products. The mouth and hoof outbreak in Europe was one which impacted the economy including farmers, leather and hides workers and all whose businesses and sustainability depends on cattles and its products. Due to the contagious nature of the disease and the ease at which it could spread if curtailment isn't effected on time, millions of cattles were slaughtered on sighting the symptoms and it's products including skins are burnt leading to losses in billions on the path of cattle rearers, shortage of lather, hides and skins, restriction in international product trade in other to avoid its spread to other parts of the world. These resulted in low supply and high demand of cattles and its products including leather goods meaning High prices for little available.

8 0
3 years ago
Tristar Production Company began operations on September 1, 2016.
vladimir2022 [97]

Answer and Explanation:

1st Sep     Land 85400/140000*120000          $73,200

               Building 54600/140000*120000    $46,800

               Cash                                                                       $120,000    

2nd Sep   Equipment 42000*0.91743            $38,532.06

                Discount  3780*0.91743                 $3,467.94

                Notes Payable                                                        $42,000

15th Sep   Truck                                                $2,700

                Sales Revenue                                                      $2,700

18th Sep   Organization Cost Expenses         $4,000

                Cash                                                                     $4,000

10th Oct    Machinery                                     $17,600

                 Cash                                                                     $17,600

2nd Dec   Office Equipment                          $5,700

                Common Stock                                                    $5,700

10th Dec   Land                                               $22,000

                Cash                                                                    $3,000

                Notes Payable                                                      $19,000

8 0
4 years ago
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Mama L [17]

Answer: $1,900

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Theft loss deduction is:

= Fair value -Theft floor limitation - 10% of AGI

= 7,000 - 100 - (10% * 50,000)

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3 0
3 years ago
If textbooks and study guides are complements, then an increase in the price of textbooks will result in a. more textbooks being
julia-pushkina [17]

Answer:

d. fewer study guides being sold

Explanation:

If there is an increase in the price of textbooks, it is fair to assume that demand for textbooks will fall and, thus, textbooks sales will also fall. When goods are complements, a decrease in demand for a certain good means that its complements will also experience a similar decrease in demand. Since textbooks and study guides are complements, the sales of study guides will also fall.

Therefore, the answer is d. fewer study guides being sold

7 0
3 years ago
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