<u>Solution and Explanation:</u>
The following formulas will be used in order to calculate the accounts receivable turnover ratio and in order to find out the number of days collect.
Accounts receivable turnover ratio = Net sales divided by Average net Accounts receivable
![=\$ 50,370 /[(\$ 7,250+\$ 5,720) / 2]](https://tex.z-dn.net/?f=%3D%5C%24%2050%2C370%20%2F%5B%28%5C%24%207%2C250%2B%5C%24%205%2C720%29%20%2F%202%5D)
= 7.77 times
<u>Days to collect</u> = 365 divided by Accounts receivable turnover ratio
= $365 divided by 7.77
= 47 days
<u>Note</u>: The number of days that has been assumed is 365 days
Answer:
B. are primarily designed to protect bondholders
Explanation:
Protective covenants are designed primarily to protect bondholders from future actions of bond issuer. They are also part of a loan agreement that limits certain actions a company may take during the course of the loan to protect the person who lend the money interests. They provide extra protection for the investors. Creditors use it to protect their interests by restricting certain activities of the issuer that could endanger the creditor's interest.
Correct option: The media only covered positive elements of the Space Race and never mentioned any setbacks.
The above given option does not talk about any aspect of media coverage of the space race and its effects on the economy. Covering only positive aspect without explaining its economic implications does not have any positive or negative effect on any economic activity, externalities or economic well being of any country. On the other hand, option B , C and D talks about economic implications.
The first step that an investor should take before beginning to invest should be to establish investment objectives.
Answer:
b. Call for $1,500
Explanation:
According to the scenario, computation of the given data are as follow:-
We can calculate the amount of margin call by using following formula:-
Loss of today = future contracts based total bushels × total contract × (settlement cost per bushels - future contract price per bushels)
= 5,000 cents × 6 × (390 cents - 385 cents)
= 5,000 cents × 6 × 5 cents
= 150,000 cents
And we know that
100 cents = 1 dollar
so,
150,000 cents ÷ 100 =$1,500
Initial margin $878 per future contract and maintenance margin $650 per contract, Margins of both are less than loss .So we have to pay $1,500 in initial margin.
According to the analysis, we will receive $1,500 margin call.
Therefore option (B) call for $1,500 is correct.
