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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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Scorpion4ik [409]
What does anything mean⇔
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3 years ago
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Why is scarcity a fundamental problem in economics
KATRIN_1 [288]

Answer:

Scarcity or limited resources, is one of the most basic economic problems we face. We run into scarcity because while resources are limited, we are a society with unlimited wants.

Explanation:

Society would produce, distribute, and consume an infinite amount of everything to satisfy the unlimited wants and needs of humans.

8 0
2 years ago
A new investment opportunity for you is an annuity that pays $550 at the beginning of each year for 3 years. You could earn 5.5%
faltersainse [42]

Answer:

$1,565.48

Explanation:

This is an annuity due type of question since the recurring payments are made at the beginning of each year unlike Ordinary annuity whose payments occur at the end of each period.

With a financial calculator on beginning mode "BGN", use the following inputs to find the PV;

Total duration of investment; N = 3

Recurring payment; PMT = 550

Interest rate; I/Y = 5.5%

One time cashflows; FV = 0

then compute for Present value ; CPT PV = 1,565.476

Therefore, the most you should pay is $1,565.48

6 0
3 years ago
During December of Year 1, Nile Co. incurred special insurance costs but did not record these costs until payment was made durin
o-na [289]

Answer:

The omission of this entry understated accrued liabilites. given that the related inventory was sold in year 1, it aslo overstated net income and retained earnings by understating cost of goods sold,  the same effects would occur if the insurance costs were chargeable to expense as a period cost

Explanation:

Rules specify that contingent liabilities should be recorded in the accounts when it is probable that the future event will occur and the amount of the liability can be reasonably estimated. This means that a loss would be recorded (debit) and a liability established (credit) in advance of the settlement.

4 0
3 years ago
Carlisle Enterprises, a specialty pharmaceutical manufacturer, has been losing market share for three years because several key
Olegator [25]

Answer:

It should obtain at least:  $  17,363,986.04

Explanation:

we have several cash flow of different magnitude. As thisi s a finite sum of cash flow, we solve using present value of each lump sum using our WACC as discount rate:

\frac{Nominal}{(1 + rate)^{time} } = PV

\frac{8,500,000}{(1 + 0.15)^{1} } = PV

\frac{7,500,000}{(1 + 0.15)^{2} } = PV

\frac{5,000,000}{(1 + 0.15)^{3} } = PV

\frac{2,000,000}{(1 + 0.15)^{4} } = PV

\frac{500,000}{(1 + 0.15)^{5} } = PV

Year      Nominal Cash Flow Present Value

1   8,500,000.00      7,391,304.35

2   7,000,000.00    5,293,005.67

3   5,000,000.00       3,287,581.16

4   2,000,000.00      1,143,506.49

5      500,000.00       248,588.37

Total Present value  17,363,986.04

8 0
3 years ago
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