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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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Answer:

$5,000

Explanation:

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4 0
3 years ago
Which of the following is not a potential pitfall of a differentiation strategy?
goldfiish [28.3K]

Answer: Option B

     

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8 0
3 years ago
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deff fn [24]

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4 0
4 years ago
Read 2 more answers
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nalin [4]

Answer:

Yes, Judy and Kristy do have an enforceable contract.

Explanation:

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Answer:

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