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o-na [289]
3 years ago
10

Amanda's Interior Design has credit sales of $783,000, costs of goods sold of $418,000, and average accounts receivable of $107,

900. How long does it take its credit customers to pay for their purchases?
Business
1 answer:
posledela3 years ago
5 0

Answer:

The 50.30 days are required to take its credit customers to pay for their purchases.

Explanation:

For computing the average collection period, we have to use the formula of the average collection period.

Average collection period = Average accounts receivable ÷ Credit sales × total number of days in a year

= $107,900 ÷ $783,000 × 365

= 0.13780 × 365

= 50.30 days

We assume 365 days in a year

The cost of goods sold is irrelevant. Thus, it is not considered in the computation part.

Hence, 50.30 days are required to take its credit customers to pay for their purchases.

You might be interested in
Both firms in a Cournot duopoly would enjoy lower profits if:
daser333 [38]

Answer:

each firm simultaneously increased output above the Nash equilibrium level.

Explanation:

A French mathematician, Antoine Augustine Cournot developed the Cournot duopoly in his economic model “Researches into the mathematical principles of the theory of wealth”, of 1838.

Cournot duopoly also known as the Cournot competition, is an economic model where two (2) business firms having identical cost functions compete in a oligopolistic market of imperfect competition with homogeneous products.

Under the Cournot duopoly, the competing firms offer identical products and thus, choose an amount or quantity to produce independently and at the same time because they cannot collude.

Both firms in a Cournot duopoly would enjoy lower profits if each firm simultaneously increased output above the Nash equilibrium level.

Hence, the advantage of the Cournot duopoly is that, it inhibits competing firms from deviating unilaterally.

4 0
3 years ago
Lakeview Company completed the following two transactions. The annual accounting period ends December 31.
Ann [662]

Answer: Check attachment and explanation.

Explanation:

a. The question has been solved. Check the attachment.

b. LAKEVIEW COMPANY

Balance sheet (Partial)

December 31

Current liabilities

FICA Payable=$4800 + $4800= $9600

Charitable contribution payable = $2400

Withheld income tax payable = $6400

State and Federal unemployment tax payable = $560

Unearned rent revenue = $5700 - $3800 = $1900

Total current liabilities = $20860

6 0
2 years ago
On September 3, 2018, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows:
emmasim [6.3K]

Answer:

In Robers Company:

Debit Accumulated depreciation $75,000

Debit Equipment $72,500

Debit Cash $10,000

Credit Equipment $145,000

Credit Gain on exchange asset $12,500

In Phifer Corporation

Debit Accumulated depreciation $83,000

Debit Equipment $82,500

Debit Loss on exchange asset $9,500

Credit Cash $10,000

Credit Equipment $165,000

Explanation:

In Robers Company:

Book value of the equipment =  $145,000 - $75,000 = $70,000

Fair value of the equipment: $82,500 > Book value

The company will record gain on exchange:

Debit Accumulated depreciation $75,000

Debit Equipment $72,500

Debit Cash $10,000

Credit Equipment $145,000

Credit Gain on exchange asset $12,500

In Phifer Corporation

Book value of the equipment =  $165,000 - $83,000 = $82,000

Fair value of the equipment: 72,500 < Book value of the equipment

The company will record loss on exchange:

Debit Accumulated depreciation $83,000

Debit Equipment $82,500

Debit Loss on exchange asset $9,500

Credit Cash $10,000

Credit Equipment $165,000

5 0
3 years ago
Caleb purchased his first home for $420,000. He made a 10% down payment and financed the remaining purchase price. The terms of
Genrish500 [490]

Answer:

In 269th Payment the principal component is greater than half of the payment

Explanation:

Amortization schedule is attached please find it.

The loan payment includes the interest and principal portion. After deducting the interest on the due balance the residual amount is paid towards the principal.  

Loan is paid per month, the amount of each payment can be calculated as follow:

Loan Payment per month = r ( PV ) / 1 - ( 1 + r )^-n

r = rate per period = 9% per year = 0.75% per month

n = number months = 30 years x 12 months per year = 360 Months

PV =  present value of all payments = $420,000

P = payment per month = ?

P = 0.75% ( $420,000 x 90% ) / 1 - ( 1 + 0.75% )^-360

P = $3,041.47 per month

Download xlsx
3 0
3 years ago
If a special sales order is accepted for​ 8,100 widgets at a price of​ $39 per​ unit, and fixed costs increase by​ $13,000, how
Lana71 [14]

Answer:

D) Increase by $68,000

Explanation:

The computation of change in the operating income is shown below:

Sales ( 8,100 widgets × $39) $315,900

Less: Variable cost (8,100 widgets × $29) ($234,900)  

Contribution margin $81,000

Less: Increase in fixed assets -$13,000

Net income increased              $68,000

We simply applying the above format so that the change in the operating income could be find out. Since the net income is in positive so it shows an increment

8 0
3 years ago
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