1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
anyanavicka [17]
3 years ago
15

TCBW last year had an average collection period (days sales outstanding) of 33 days based on accounts receivable of $350,000. Al

l of the firm's sales are made on credit. The firm expects sales this year to be the same as last year. However, the company has begun a new credit policy that should lower the average collection period to 28 days. If the new average collection period is attained, what will the firm's accounts receivable balance equal
Business
1 answer:
sergeinik [125]3 years ago
7 0

Answer:

$296,969.70

Explanation:

Days of sales outstanding = number of days in a period / receivables turnover

Receivables turnover = revenue / average receivables

33 = 365 / receivables turnover

receivables turnover = 11.060606

11.060606 = revenue / $350,000

revenue = $3,871,212.12

with the new policy and same revenue :

28 = 365  / receivables turnover

receivables turnover = 13.035714

13.035714 = $3,871,212.12 / average receivables

= $296,969.70

You might be interested in
Bric Autos Inc., a Campora-based automobile company, made a capital investment of $300,000 to set up production units and distri
MrMuchimi

The given investments are best known as Foreign direct investments .

<u>Explanation: </u>

Foreign direct investment (FDI) is an offer made by an individual Situated in some other nation in the context of holding ownership of an enterprise in one country. Therefore, the principle of direct control separates itself from an investment in a foreign fund.

For open markets instead of regulated equity markets, FDIs are widely used.

Types of Foreign direct investment are horizontal, vertical and multinational. In another region, Horizontal defines the same company category, while vertical is related but separate, and conglomerates are different firms.  

FDI to the US is continuously tracked by the Bureau of economic analysis.

The example of an FDI is Apple's venture in China.

7 0
4 years ago
Information technology can be used to support _______________. product development teams customer support processes any other bu
Nadusha1986 [10]
Information technology can be used to support - D. all the choices are correct. All of these choices can benefit from information technology, whether those are product development teams, customer support processes, or any other business activities. Information technology nowadays is a must-have, because basically everything today is done using computers or the Internet, which is why all employees should be technologically-literate. 
6 0
3 years ago
The amount of oil that is economically feasible to extract from a deposit using current technology is known as ______ oil reserv
strojnjashka [21]

Answer: Proven oil reserves

Explanation:

Proven oil reserves are those that humans can extract oil from given our current technological and economic situations.

Under Proven oil reserves there are those that are Proven developed and those that are Proven Underdeveloped. Proven Developed ones can be extracted from as they come from already existing wells. Proven Underdeveloped however would need further investment to get them ready.

6 0
3 years ago
A company purchased $270,000 in supplies during the year. The supplies account increased by $10,000 during the year to an ending
LuckyWell [14K]

Answer:

$260,000

Explanation:

Opening balance = Ending balance - Increase in ending balance

=$66,000 - $10,000

=$56,000

Supplies Expenses = Opening balance + Purchases - Closing balance

=$56,000 + $270,000 - $66,000

=$336,000 - $66,000

=$260,000

Therefore, the amount that will be the adjusting entry to supplies expenses is $260,000

7 0
3 years ago
York Casting Services started the year with total assets of $110,000 and total liabilities of $50,000. The revenues and the expe
Wittaler [7]

Answer:

Net income:                             $

Revenue                             140,000

Expenses                            (50,000)

Dividend paid                    <u> (70,000)</u>

Net income                        <u> </u><u>20,000</u><u>   </u>      

Net income is the amount of increase in stockholders' equity.                                                          

Explanation:

Net income is the excess of revenue over expenses and dividend. A positive net income increases the stockholders' equity. Common                                                                                                                                                      stockholders are legal owners of a company, thus, any income not distributed as dividend increases their equity.                                                            

6 0
3 years ago
Other questions:
  • On January 31, 2016, Charlie Company paid employees $6,500 for January wages earned. Prepare the general journal entry (without
    11·1 answer
  • Difference between horticulture and floriculture
    14·2 answers
  • Clayton is asking his life insurance producer about any potential taxation issues related to his $100,000 personal Whole Life po
    10·1 answer
  • When the marginal benefit of an output exceeds the marginal cost?
    7·1 answer
  • The "ability to pay" principal says people who can afford to pay more taxes should pay more taxes to help those who cant pay a l
    7·2 answers
  • A food service operation that is concerned with sourcing asks suppliers detailed questions about _____ the food is produced. A.
    7·2 answers
  • A buyer made an offer to purchase a property. The owner responded with a counteroffer. While the buyer was reviewing the counter
    10·1 answer
  • Disagreement about an employee’s performance as perceived by different sources is ____________ a problem.
    11·1 answer
  • Which of the following is a BAD budgeting strategy to use if you want to save money at the grocery
    14·1 answer
  • Discriminatory practices that are deeply embedded in institutions such as education, health care, business, and criminal justice
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!