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Archy [21]
3 years ago
6

Chapter 4

Business
1 answer:
zalisa [80]3 years ago
3 0

Answer: $800,000

Explanation:

Day sales Outstanding = 40 days

Annual sales = $7,300,000

Total days for the year = 365 days

We need to know the average sales per day which will be:

= $7,300,000 / 365

= $20,000

DSO = Account receivable / Average sales per day

40 = Account receivable / 20,000

Account receivable = 40 × 20,000

= $800,000

Therefore, the account receivable balance is $800,000

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Franchise is the business model which is adopted by many business organisation for the purpose of business expansion. Where the other new business holders carry out the business using the company's procedure, brand name etc.

Under the same name and business line, the business is carried out by the new reciters and a amount of their profit is earned by the owner of the business. Here in this case Samantha is using Franchise business model.

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If inflation in the U.S. is projected at 3% annually for the next 5years and at 7% annually in Turkey for the same time period,
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