Answer:
The 50.30 days are required to take its credit customers to pay for their purchases.
Explanation:
For computing the average collection period, we have to use the formula of the average collection period.
Average collection period = Average accounts receivable ÷ Credit sales × total number of days in a year
= $107,900 ÷ $783,000 × 365
= 0.13780 × 365
= 50.30 days
We assume 365 days in a year
The cost of goods sold is irrelevant. Thus, it is not considered in the computation part.
Hence, 50.30 days are required to take its credit customers to pay for their purchases.
Answer:
B. 20,904
Explanation:
For computing the additional pens first we have to determine the contribution per unit which is shown below:
Revenue $500,000
Less: Plastic cost -$200,000
Less: ink cost -$1,000
Contribution margin $299,000
Divided by Number of units sold ($500,000 ÷ $2) $250,000
Contribution per unit $1.196
Now the additional pens required is
= $25,000 ÷ $1.196
= $20,904
Answer:
What is its NOWC?
500
Explanation:
NOWC=(CURRENT ASSETS-EXCESS CASH)-(CURRENT LIABILITIES-NOTES PAYABLE)
Answer:
The variable should be included or excluded based on its significance.
True
Explanation:
Multicollinearity affect independent variables which are correlated. These effect the regression model equation and would increase the deviation error. The standard error is incorporated in the calculation by the variance. When multicollinearity is not included in the population then the variance error will be minimum.
Answer:
$477
Explanation:
Calculation to determine the surrender charge Sophia had to pay
Using this formula
Surrender charge = [Withdraw all amount - (Free withdraw all % x Account value)] x Surrender charge
Let plug in the formula
Surrender charge= [$13,700 - (0.12 x $70,000)] x 0.09
Surrender charge= ($13,700-$8,400)×0.09
Surrender charge=$5,300×0.09
Surrender charge=$477
Therefore the surrender charge Sophia had to pay is $477
