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Dafna11 [192]
3 years ago
9

Q 8.17: The financial statements of the Larson Company report net sales of $1,000,000 and accounts receivable of $80,000 and $60

,000 at the beginning of the year and end of year, respectively. What is the average collection period for accounts receivable in days
Business
1 answer:
Phoenix [80]3 years ago
8 0

Answer:

25.55 days

Explanation:

first we must calculate the accounts receivable turnover ratio = net sales / average accounts receivable

net sales = $1,000,000

average accounts receivable ($80,000 + $60,000) / 2 = $70,000

accounts receivable turnover ratio = $1,000,000 / $70,000 = 14.286

average collection period = 365 days / accounts receivable turnover ratio = 365 / 14.286 = 25.55 days

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Answer:

 A. $38,500 

Explanation:

The net present value is the present value of after tax cash flows from an investment less the amount invested.

Npv can be calculated using a financial calculator.

Cash flow in year 0 = $-190,000

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Cash flow in year 4 = $75,000 + $25,000 = $100,000

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To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

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3. Press compute

I hope my answer helps you

6 0
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Which of the following is true regarding GASB's definition of the financial reporting entity?
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Answer:

d. All of the above are true

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I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

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