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Burka [1]
4 years ago
6

TCBW last year had an average collection period (days sales outstanding) of 36 days based on accounts receivable of $380,000. Al

l of the firm's sales are made on credit. The firm expects sales this year to be the same as lat year. However, the company has begun a new credit policy that should lower the average collection period to 26 days. If the new average collection period is attained, what will the firm's accounts receivable balance equal?
Business
1 answer:
vredina [299]4 years ago
7 0

Answer:

The firm's accounts receivable balance is $274,444.39

Explanation:

In this question, we have to apply the daily sales outstanding ratio which is shown below:

Days sales outstanding = (Accounts receivable ÷ Total credit sales) × total number of days in a year

36 days = ($380,000 ÷ total credit sales) × 365 days

So, the total credit sales = ($380,000) × (365 days ÷ 36 days)

                                        =  $3,852,777

Now apply the same formula, So the account receivable equal to

= $3,852,777 × (26 days ÷ 365 days)

= $274,444.39

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C. 20.00 percent

Explanation:

The computation of the accounting rate of return is shown below:

The formula to compute the accounting rate of return is shown below:

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where,  

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So, the accounting rate of return on initial investment is

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3 years ago
If the price of a substitute increases, which of the following is most likely to happen in the market for the product under cons
OleMash [197]

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If the price of a substitute increases, which of the following is most likely to happen in the market for the product under consideration in the short run?

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4 years ago
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2 years ago
Assume the annual interest rate is 6%. Calculate the value of an investment that pays $100 every two years, starting two years f
Serga [27]

principal = p

annual interest rate R = 6%

1-year time t

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investment = 833.3

number of compounding periods)) ^ (number of compounding periods) - 1. For investment A, this is: 10.47% = (1 + (10% / 12)) ^ 12 - 1. investment For B, it looks like this: be : 10.36% = (1 + (10.1% / 2)) ^ 2 - 1.

The formula for converting simple interest to annual compound interest is (1 + R/N)N - 1 where R is the simple interest rate. , where N is equal to the number of compounded interest in one year. Future Value Formula The superscript n represents the number of compounding periods that occur during the period you are calculating. ...

3) FV = $1,000 x (1 + 0.1)5

Learn more about interest here;

brainly.com/question/24924853

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5 0
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