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3 years ago

Compute the receivables turnover ratio using the following information:

Business

1 answer:

REY [17]3 years ago

8 0

Answer:

Receivables Turnover Ratio is 4

Explanation:

Computation of Average Receivables

Opening Receivables $ 40,000

Ending receivables <u>$ 60,000</u>

$ 100,000

Average receivables $ 50,000

Net Credit Sales $ 200,000

The Receivables Turnover ratio is calculated by dividing the Net Credit Sales by the Average Receivables.

Receivables Turnover Ratio = Net Credit Sales / Average Receivables

$ 200,000/ $ 50,000 = 4

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You are evaluating a project that will cost $500,000, but is expected to produce cash flows of $125,000 per year for 10 years, w

boyakko [2]

Answer:

1. 4 years

2. No

Explanation:

Payback period calculates the amount of time to recoup the total investment made on a project. It calculates how long the cash flows generated from a project would cover the cost of the project.

The cost of the project is $500,000

Cash flows are $125,000 per year for 10 years.

In the first year, the cost of the project is reduced by $125,000 and becomes $375,000.

In the second year, the cost of the project is reduced by $125,000 and becomes $250,000.

In the third year, the cost of the project is reduced by $125,000 and becomes $125,000.

In the fourth year, the cost of the project is reduced by $125,000 and becomes $0.

The cost of the project is totally recouped in the 4th year. therefore, the payback period is 4 years.

But the company has a preferred payback period of 3 years ,therefore , the firm won't undertake the project because the payback period is more than 3 years.

3 0

3 years ago

question content area for the year ended december 31, orion, inc. mistakenly omitted adjusting entries for $1,500 of supplies th

Oduvanchick [21]

Errors will have a $2,300 overstatement of net income on revenues, costs, and net income.

The amount earned by an individual or business after costs, allowances, and taxes is referred to as net income. Net income in the company is the amount that remains after all costs, such as salaries and wages, the cost of goods or raw materials, and taxes, have been paid.

Net income = Total revenue - total expenses

where,

Total revenue = Unearned revenue = $4,200

Total Expense = Supplies expense + insurance expense = $1,500 + $5,000 = $6,500

Net Income = Total revenue - Total Expenses = $4,200 - $6,500

Net Income = -$2,300

Therefore, there's an overstatement of $2300 in Net Income.

To know more about Net Income, refer to this link:

brainly.com/question/6391667

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6 0

11 months ago

Which of the following explains why a recipe is considered an algorithm?

Len [333]

Answer:

the dish created by a recipe is the same each time it is followed properly

Explanation:

6 0

3 years ago

You are the chief financial officer for a firm that sells digital music players. Your firm has the following average-total-cost

Finger [1]

Answer:

False

Explanation:

Since for finding out whether the offer is accepted or not, first we have to determine the total cost at 600 number of players and for 601 number of players which is

The total cost of 600 players is

= 600 × $300

= $180,000

The total cost of 601 players is

= 601 × $301

= $180,901

Now the marginal cost is 601 player is $901 which is difference between the $180,000 and $180,901 that is higher than the offered price i.e $550

Therefore, the offer should not be accepted

6 0

3 years ago

When it comes to distribution what is the least expensive route when getting the product from the manufacture or farmer to the u

Nezavi [6.7K]

<h2>Direct distribution is one of the least expensive route to access customer directly</h2>

Explanation:

Direct distribution is one the method which does not involve any intermediaries.
They do not have dealers, sub-dealers, etc to reach the customer with the product.
Online shopping enables direct distribution
Since direct distribution does not involve intermediaries, it can reach customer more quickly and the cost is also less.
Whereas when the product is reached through indirect distribution, then we have to spend amount on transport to reach product to dealers, then dealers spend money to sub-dealer and so on.

5 0

3 years ago