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NeTakaya
3 years ago
8

Given the following information, compute accounts receivable turnover. Gross sales $150,000 Accounts receivable, beginning of ye

ar $18,000 Sales 135,000 Accounts receivable, end of year
Business
1 answer:
STatiana [176]3 years ago
5 0

Answer:

6.75

Explanation:

Given that,

Gross sales = $150,000

Accounts receivable, beginning of year = $18,000

Sales = $135,000

Accounts receivable, end of year = $22,000

Average accounts receivables:

= (Beginning AR + Ending AR) ÷ 2

= ($18,000 + $22,000) ÷ 2

= $40,000 ÷ 2

= $20,000

Accounts receivable turnover:

= Sales ÷ Average accounts receivables

= $135,000 ÷ $20,000

= 6.75

Note: Accounts receivable, end of year is missing from the question. It is amounted to $22,000.

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Zeta Corporation is a manufacturer of sports caps, which require soft fabric. The standards for each cap allow 2.00 yards of sof
Alex777 [14]

Answer:

Material Price Variance = $2,500 Unfavorable

Explanation:

Standard fabric for each cap = 2.00 yard

Standard price per yard = $2.00 per yard

Actual price per yard = $2.10

Actual Quantity = 25,000 yards

Materials price variance = (Standard price - Actual Price) \times Actual Quantity

= ($2.00 - $2.10) \times 25,000 = - $0.10 \times 25,000

= - $2,500

Since it is negative in value it is Unfavorable

7 0
3 years ago
Consider the market for plastic deck chairs. Suppose many families go on a barbecue binge and buy new barbecue grills to use out
rusak2 [61]

Answer:

I think it might be c

Explanation:

the demand is higher giving the company more money to upgrade the product

4 0
3 years ago
Topsider Inc. is evaluating whether to replace an existing leather-cutting machine with a new machine that has a five-year life.
pogonyaev

Answer:

$9,520

Explanation:

Terminal cash flow = After tax salvage value of new machine + Recovery of net working capital

Terminal cash flow = $6,000 + $3,520

Terminal cash flow = $9,520

So, the new machine's terminal cash is $9,520.

5 0
3 years ago
Businesses across the country are starting to install extra insulation in their buildings and warehouses. Households are now dec
8090 [49]

Answer:

The answer is: B) Equilibrium price and quantity of oil will decrease.

Explanation:

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4 0
3 years ago
You are considering opening a new plant.
kotykmax [81]

Answer:

1. $275 million

Yes

2. 30%

Explanation:

Calculation for the NPV of the investment opportunity

NPV = –100 + 30/0.08

NPV= $275 million

Therefore the NPV will be $275 million

Yes, Based on the above Calculation they should make the investment

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IRR: 0 = –100 + 30/IRR

Hence,

IRR = 30/100

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Therefore the IRR will be 30%

The IRR is great only in a situation where the cost of capital does not go beyond 30%.

6 0
3 years ago
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