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
What problems has russia experienced in switching from a state-controlled to a free market economy?
Papessa [141]

Answer: Russia experience sever economic crisis

Explanation:

A free market system is one in which the cost and availability of products is determined by the forces of demand and supply. There is no or negligible government intervention in the functioning of the economy. When Russia transformed from being a state controlled system to a market oriented system, it lead to enormous corruption and economic crisis.

8 0
2 years ago
In a small open economy, starting from a position of balanced trade, if the government increases the income tax, this produces a
aniked [119]

Answer:

Trade Surplus and positive net Capital flow

Explanation

5 0
3 years ago
On November 1, Bahama National Bank lends $3.8 million and accepts a six-month, 6% note receivable. Interest is due at maturity.
babymother [125]

Answer and Explanation:

The journal entries are shown below:

a. Note receivable Dr $3,800,000

        To Cash $3,800,000

(Being the acceptance of the note is recorded)

For recording this we debited the note receivable as it increased the assets and credited the cash as it decreased the liabilities

b. Interest receivable Dr  $38,000

                 To Interest revenue  $38,000

(Being the interest revenue is recorded)

For recording this we debited the interest receivable as it increased the assets and credited the interest revenue as it increased the revenue

The computation is shown below:

= $3,800,000 × 6% × 2 months ÷ 12 months

= $38,000

,

7 0
2 years ago
2. Which of the following is most likely to raise a significant ethical issue? (select one).
zhannawk [14.2K]

Answer:

A Business School student looking at changes in structures of Small and Medium Sized Enterprises (SMEs) using publicly available information

Explanation:

5 0
2 years ago
ABC Company sells its 4G SD memory card for $ 15 per unit. The unit production cost is $ 3 and unit labor cost is $ 5. The packa
Tomtit [17]

Answer:

$93,750

Explanation:

Contribution margin=15-(5+3+3)=4

Fixed Costs=$60,000+$40,000=$100,000

Break even point  in units=$100,000/4=25,000

Break even point in $=25,000/(4/15)=$93,750

7 0
3 years ago
Read 2 more answers
Other questions:
  • Can people who disagree about normative ethical theory still reach agreement on practical ethical questions in the business worl
    12·1 answer
  • A customer at Jaquine, a French restaurant, complains to Brent, the owner, about a specialty dessert being unacceptable. Brent i
    8·1 answer
  • if you want to be able to compare different investments , which piece of information is the most helpful
    5·1 answer
  • Complete the statement with correct word in a recent survey. It was observed that many Asian youths have stated watching America
    15·2 answers
  • Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and compu
    11·1 answer
  • Which response might be an answer to a fundamental question of economics of how much should be produced ?
    11·1 answer
  • ‘Buffer stock’ is the level of stock​
    15·2 answers
  • Mr. and Mrs. Jones are purchasing a summer home in a new resort development. The house is completely equipped, and the buyers ha
    7·1 answer
  • Panelli's is analyzing a project with an initial cost of $139,000 and cash inflows of $74,000 in Year 1 and $86,000 in Year 2. T
    11·1 answer
  • Free Brainlist lol <br><br> Me You<br> (☞゚ヮ゚)☞ ☜(゚ヮ゚☜)
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!