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valentina_108 [34]
3 years ago
8

Following are the average accounts receivable and net sales reported recently by two large bever age companies (dollar amounts a

re stated in millions):
Average accounts receivable Net sales

Molson Coors Brewing Co................. $720 $8,320
Anheuser-Busch Companies, Inc........ 900 17,400

a. Compute the accounts receivable turnover rate for each company (round your results to one decimal place).
b. Compute the average number of days that it takes for each company to collect its accounts receivable (round your results to the nearest whole day).
c. Based upon your computations in a and b, which company’s accounts receivable appear to be most liquid? Defend your answer.
Business
1 answer:
Vlada [557]3 years ago
3 0

Answer:

A)   Accounts receivable turnover ratio = Net credit sales / Average accounts receivable

The following table shows the accounts receivable turnover ratio of MCB and ABI:

Particulars                                                  MCB          ABI

Net sales                                                 $8320     $17400

Average Accounts Receivable                 $720      $900

Accounts Receivable Turnover rate            11.5                19.3

B)  

Day's sale outstanding  = Accounts receivable / Total credit sales  × 365

The following table shows the days sale outstanding of MCB and ABI:

Particulars                                                    MCB             ABI

Net sales                                                    $8,320           $17,400

Average Accounts Receivable                    $720            $900

Day's sale outstanding                               31.58                 18.88

Explanation:

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Citrus2011 [14]

Answer: (C) Middle of the roaders

Explanation:

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 The main aim of the middle of the roaders is to target the consumers in the middle range of the spending or we can say that income.

 The middle of the roaders is the term which is used to refers to the action that is typically in the midway between the two different type extremes and it basically focuses on the niche marketing segments.  

Therefore, Option (C) is correct answer.  

3 0
2 years ago
Dorothy Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following e
tensa zangetsu [6.8K]

Answer:

Explanation:

April 2

Dr Cash  34,830

Dr Equipment 15,540

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no entry

April 3

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April 7

Dr Rent expense 630

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Dr Accaunts receivable 1360

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April 12

Dr Cash 3940

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April 17

Dr Cash 2950

     Cr Service Revenue 2950

April 21

Dr Insurance expense 150.30

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April 21

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April 30

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4 0
3 years ago
The short-run break-even price A) is the price at which the firm's current liabilities are paid off. B) is the price at which a
kkurt [141]

Answer:

B. is the price at which a firm's total revenues equal total costs

Explanation:

The short run in economics is a period of time in which one factor of production is fixed and others are varied. In the short run, the market is not fully in equilibrium. Break even is the point in which the total cost used in the course of production is equal to the total revenue earned from the products produced. In a break even scenario, there is no profit and there is no loss. At this point, firms are making normal rate of return on money invested and are able to settle all cost of production.

8 0
3 years ago
When the effective-interest method of bond discount amortization is used,
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Answer: C. interest expense will not be a constant dollar amount over the life of the bond.

Explanation:

When a bond is sold at a discount, the discount will have to be amortized over the life of the bond to ensure that it reaches par at maturity.

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6 0
2 years ago
Assets are 300,000 and equity is 100,000, assets increase 80,000 liabilities increase 50,000. what is equity at year end?
mojhsa [17]
<span>Assets - equity = liabilities
  So liability before the increase is:
 300, 000 - 100, 000 = 200, 000
 And if assets increases by 80, 000. Hence new assets = 380, 000. Liabilities increases by 50, 000; hence new liability = 250, 000.
 New Equity = New Assets - New liability.
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6 0
3 years ago
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