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bonufazy [111]
3 years ago
14

The 2013 income statements of Leggett & Platt, Inc. reports net sales of $3,746.0 million. The balance sheet reports account

s receivable, gross of $482.6 million at December 31, 2013 and $465.4 million at December 31, 2012. The average collection period in 2013 was Select one: a. 46 days b. 10 days c. 47 days d. 8 days e. None of the above
Business
2 answers:
Mamont248 [21]3 years ago
7 0

Answer:

The answer is a. 46 days.

Explanation:

The average collection period is the time it takes on average to receive the cash from the credit sales. It is the time period for which an average accounts receivable pays the company. The formula for average collection period is,

Average collection period = (Average accounts receivable / Net sales) *365

Where 365 is taken as the number of days in a year.

The average of accounts receivables can be calculated by adding the opening and closing accounts receivables and dividing them by 2.

Average accounts receivables = (465.4 + 482.6) / 2 = 474 million

Average collection period = (474 / 3746) * 365 = 46.185 days rounded off to 46 days.

pickupchik [31]3 years ago
3 0

Answer:

The correct option is A, 46 days

Explanation:

Average collection period=365 days/average receivables turnover ratio

Accounts Receivable Turnover Ratio = Net Credit Sales / Average Accounts

Receivable

Net credit sales is $3,746.0 million

Average receivables=$482.6 million+$465.4 million=$474  million

Accounts receivables turnover ratio=$3,746.0 million/$474  million

                                                            =7.90

Average collection period=365/7.90

                                           =46.20 days

When is rounded to a whole number it becomes 46 days,no doubt option A is the correct option .

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A local partnership is liquidating and is currently reporting the following capital balances: Barley, capital (50% share of all
lesya692 [45]

Answer:

Barley $29,000; Carter $23,000 ;Desai $0

Explanation:

Calculation to determine How much of this money should each of the partners receive

PARTNER WITH DEFICIT CAPITAL BALANCE

Barley,Capital(50%) Carter,Capital(30%)

Desai,Capital(20%)

Reported balances $44,000 $32,000 $(24,000)

Potential loss from Desai deficit

(split 5/8:3/8)

($15,000)($9,000) $24,000

Barley (5/8*$24,000=$15,000)

Carter (3/8*$24,000=$9,000)

Desai($15,000)($9,000) =$24,000

Cash distributions $29,000 $23,000 $0

Barley ($44,000-$15,000=$29,000)

Carter, ($32,000-$9,000=$23,000)

Desai($24,000-$24,000=0)

Therefore The amount of the money that each of the partners should receive is :

Barley $29,000; Carter $23,000 ;Desai $0

8 0
3 years ago
The goals scored per game by a soccer team represent the first quartile for all teams in a league. what can you conclude about t
nirvana33 [79]

Actually the quartile represents in what rank or order the team is when all the goals per team is arranged in ascending order. So for example since the team is on the first quartile, so this means it is on the 25% of the ranking. Hence we can say that:

“the team scored fewer goals per game than 75% of the teams in the league”

3 0
3 years ago
Lauren plans to deposit $5000 into a bank account at the beginning of next month and $175/month into the same account at the end
Serhud [2]

Answer:

$12,053.86

Explanation:

The easiest way to calculate this is using an excel spreadsheet and the future value function. Using the FV function =FV(rate,nper,pmt)

  • rate = 3%/12 = 0.25%
  • nper = 36
  • pmt = 175

This function will give us the future value of the annuity =FV(0.25%,36,175) = $6,583.60

Now we must add the future value of the original $5,000:

future value = $5,000 x (1 + 0.0025)³⁶ = $5,470.26

total future value = $6,583.60 + $5,470.26 = $12,053.86

if you do not want to use an excel spreadsheet, you can use the following formula:

F = P x ([1 + r]ⁿ - 1 )/r

F = 175 x [(1 + 0.0025)³⁶ - 1] / 0.0025 = $6,583.60

the answer will be the same

3 0
3 years ago
The Talbot Company uses electrical assemblies to produce an array of small appliances. One of its high cost / high volume assemb
Pani-rosa [81]

Answer:

160

Explanation:

Reorder point is the inventory level at which new order are placed to prevent a down time due to stock out and and holding cost are also at the minimal level .

<u>Workings</u>

Annual demand = 8000

Ordering cost = $50

Holding cost = $20

Operating days = 250

Lead time =5 days

Re order point = Average daily usage * Average lead time

Average daily usage = 8000/250 = 32

Reorder point = 32*5 =160

3 0
3 years ago
Q 9.37: when should the gross profit method of inventory valuation not be used because it is invalid?
rusak2 [61]
At  the  end  of  given  period the  gross  profit  method  is  required  to  estimate  inventory.The  valuation  become  invalid  when the  following  are  not  available.the  value   for   the  beginning of inventory,records  of  purchase  made, the  total  sale  during  the  period   and  the  gross  profit  margin.
5 0
3 years ago
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