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kenny6666 [7]
3 years ago
15

Tall Guys Clothing has a 45-day collection period. Sales for the next calendar year are estimated at $2,100, $1,600, $2,500 and

$2,300, respectively, by quarter, starting with the first quarter of the year. Given this information, which one of the following statements is correct? Assume a year has 360 days.
(A)The firm will collect a total of $800 in Quarter 2.
(B) The accounts receivable balance at the beginning of Quarter 4 will be $1,150.
(C) The firm will collect a total of $2,000 in Quarter 3.
(D) The firm will have an accounts receivable balance of $2,300 at the end of the year.
(E) The firm will collect a total of $2,400 in Quarter 4.
Business
1 answer:
BigorU [14]3 years ago
5 0

Answer:

(E) The firm will collect a total of $2,400 in Quarter 4.

Explanation:

We will calcualte under two assumptions:

  1. the sales are done uniformly over the quarter
  2. and the collection period is the same over the entire year

With this we conclude the following:

each quarter has 90 days

the sales from day 1 to 45 will be collected within the quearter while the sales from 46 to 90 will be collected on the next quarter.

so half the sales will be collected during the quarter as sales are done uniformly.

<u>Collection on Q1</u>

2,100 / 2 = 1,050

<u>collection on Q2</u>

1,050 + 1,600/2 = 1,850

<u>collection on Q3</u>

800 + 2,500/2 =2,050

<u>collection on Q4</u>

1,250 + 2,300/2 = 2,400

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3 0
2 years ago
A bond issue with a face amount of $400,000 bears interest at the rate of 8%. The current market rate of interest is 9%. These b
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The question is incomplete. The complete question is,

A bond issue with a face amount of $400,000 bears interest at the rate of 8%. The current market rate of interest is 9%. These bonds will sell at a price that is:

More than $400,000.

Equal to $400,000.

Less than $400,000.

The answer cannot be determined from the information provided.

Answer:

The bond sells at a price less than $400000

Explanation:

The coupon rate of bonds is the interest rate at which the bond will pay the interest. When the coupon rate of a bond is less than the market interest rate or the Yield to Maturity (YTM), the bond sells at a discount in the market. On the other hand, if the coupon rate of bond is greater than the market interest rate, the bond sells at a premium.

As the coupon rate of the given bond is 8% which is less than the market interest rate of 9%, the bond sells at a discount. Thus, the price at which the bond sells is less than $400000.

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At allen and thomas architects, a group of designers are developing the first drawings for a proposed multiuse office developmen
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Answer:

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2 years ago
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Answer:

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b) Since Roquan's income is higher than $213,300, then he is not allowed any QBI deduction.

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