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
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:

You might be interested in
Zach returned $200 of merchandise to secret trails. his original purchase was $400, with terms 1/10, n/30. if justin pays the ba
Illusion [34]

the answer i think is c

$200.00

8 0
3 years ago
Read 2 more answers
Believing in your capabilities and demonstrating<br> confidence in the tasks that you perform
Montano1993 [528]
Helps to boost outs comes and productivity.
3 0
3 years ago
Which important biochemical process receives a supply of nad ions from the fermentation process during anaerobic respiration?
Alexxandr [17]

Answer:

Glycolysis

Explanation:

Glycolysis is the process that receives a supply of NAD+ ions from the fermentation. When cells need energy but there is no oxygen for aerobic respiration than anaerobic respiration takes place.

5 0
2 years ago
ABC Corporation has E &amp; P of $240,000. It distributes land with a fair market value of $70,000 (adjusted basis of $25,000) t
stealth61 [152]

Answer: Paul has a taxable dividend of $15,000.

Explanation:

From the question, we are informed that ABC Corporation has E & P of $240,000 and distributes land with a fair market value of $70,000 (adjusted basis of $25,000) to its sole shareholder, Paul. We are further informed that the land is subject to a liability of $55,000.

The taxable dividend will be the difference between the fair market value of land and the liability on the land. This will be:

= $70,000 - $55,000

= $15,000

Therefore, Paul has a taxable dividend of $15,000.

5 0
3 years ago
You’ve collected the following information from your favorite financial website.
Nataliya [291]

Answer:

-9.92%

Explanation:

P₀ = Div₁ / (Re - g)

  • Div₁ = next year's expected dividend = $1.12 x (1 - 11.5%) = $0.9912
  • Re = cost of equity = ?
  • P₀ = current stock price = $62.91
  • g = dividend's growth rate = -11.5%

Re =  (Div₁ / P₀) + g

Re = ($0.9912 / $62.91) - 11.5%

Re = 1.58% - 11.5% = -9.92%

Since the cost of equity or required rate of return cannot be negative, I suppose that investors are not worried about Abbott distributing dividends, instead, they prefer that the company reinvests earnings in new projects.

3 0
3 years ago
Other questions:
  • Which one of the following is a selection method that organizations can adopt to identify employees who innovate, share ideas, a
    13·1 answer
  • aspela Corp. had the same capital structure in year 7 and year 8, consisting of the following: Preferred stock, $12 par, 5% cumu
    7·1 answer
  • On June 1, CamCo received a signed agreement to sell inventory for ¥500,000. The sale would take place in 90 days. CamCo immedia
    14·1 answer
  • Let L represent the number of workers hired by a firm, and let Q represent that firm's quantity of output. Assume two points on
    8·1 answer
  • What are the 3 functions of banks?
    15·1 answer
  • Items that regularly appear on the financial statements of Maple Park Theatres Corp. The amounts shown for balance sheet items a
    14·1 answer
  • f the company estimates that it will need 55,480 pounds of raw material to satisfy production needs in March, then the raw mater
    8·1 answer
  • Mobile Minutes Company offers Nate an unlimited number of monthly phone minutes for $4.50 per month. Nate accepts. If a dispute
    14·1 answer
  • Wexim Toys sold merchandise to a customer on credit, terms 2/10, n/30 for $11,700. Three days later, the customer returned $2,30
    11·1 answer
  • Corporate shareholders are best protected from incompetent management decisions by
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!