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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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Suppose in country A, company B is a giant firm in the domestic smart- phone business with more than 70% market shares. Customer
Mazyrski [523]

Answer and Explanation:

a) The reason Company B installed unwanted apps could be because they have a contract with third party app development companies in which the third party firm pays them for installing their apps on their mobile phone. Also, since they have 70% of the market share, the third party companies know the dominant firm's mobile phones are bought by majority of the people Country A.

b) Possible reason could be that the company wants the consumers to have important apps pre-installed in their mobile phones so that they would not have to face the hassle of downloading the apps on their own. Basically for their convenience.

Monopoly is a market structure where one firm has absolute market power subject to government regulation. It includes unique product or no close substitution, market entry and exit is quite hard, non price competition is non existent. Therefore, as a lawyer representing the consumer, I would look into the above conditions that influence monopoly. Such as if the market entry of new entrants is hard or not. Also, since the firm holds 70% of the market share, it is quite evident that the firm is the single dominating company within the industry. This could be one of the major thing that could identify that this is a monopoly market structure.

c) In the case of being a lawyer and representing the firm, the best data I could gather is that mobile phone is not a unique product and the 30% of the market share is still catering to the demand of the people within Country A. Therefore, there is potential for other firms to launch a mobile phone which has no pre-installed apps and customers could buy their product.

6 0
3 years ago
Hotwax makes surfboard wax in a single operation. This period, Hotwax purchased $62,000 in raw materials. Its production departm
ki77a [65]

Answer:

Purchase of raw materials

Raw Materials $62,000 (debit)

Cash $62,000  (credit)

Direct materials requisation

Work - In - Processs : Production Department $50,000 (debit)

Raw Materials $50,000 (credit)

Explanation:

Purchase of raw materials

Raw Materials $62,000 (debit)

Cash $62,000  (credit)

<em>Recognise Asset - Raw Materials and De-recognise Asset - Cash</em>

Direct materials requisation

Work - In - Processs : Production Department $50,000 (debit)

Raw Materials $50,000 (credit)

<em>Recognise Cost of Production in Work in Process (Production department) and De-recognise the Asset - Raw Materials</em>

5 0
3 years ago
Present value. The State of Confusion wants to change the current retirement policy for state employees. To do​ so, however, the
Alekssandra [29.7K]

Answer:

The present value of the pension fudn is 32,817,587,624.32 dollars

the state must first pay this amount before start a new pension plan

Explanation:

Employees 240,000

The average employee is 22 years away fro mretirement.

and the average retirement benefit is 400,000

discount rate: 5%

<u>Total fund obligation:</u>

240,000 employees x 400,000 dollars each = 96.000.000.000

Then, we discount at 5% for 22 years:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  96,000,000,000.00

time   22 year

rate    5% = 0.05

\frac{96000000000}{(1 + 0.05)^{22} } = PV  

PV   32,817,587,624.32

5 0
3 years ago
uses project characteristics in a mathematical model to estimate project costs. a. Rough order of magnitude estimating b. Bottom
Illusion [34]

Answer:

The correct answer is letter "E": Parametric estimating.

Explanation:

Parametric costs estimating allows companies to estimate future expenditures based on activities the firm incurred in the past. The approach uses mathematical equations and statistic methods to support the predictions. In the process, variables -<em>called parameters for the approach</em>- are the reference for both mathematical calculation and statistic analysis.

7 0
3 years ago
If the actual price in this market were above the equilibrium price, quantity supplied would begreater than quantity demanded, s
nevsk [136]
A: True

True. Tire. True. True
6 0
3 years ago
Read 2 more answers
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