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const2013 [10]
3 years ago
13

Essence of Skunk Fragrances Calculate the average collection period. (Do not round intermediate calculations and round your answ

er to 2 decimal places, e.g., 32.16.) What is the receivables turnover? (Use 365 days a year. Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) What is the amount of the company’s average receivables? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Greeley [361]3 years ago
6 0

Answer:

1. Average collection period 41.25 days

2. Receivable Turnover 8.84848485

3. Average Receivable $521,558.22

Explanation:

1. Calculation for Average collection period

First step is to calculate the Percentage of customers not receiving discounts

Percentage of customers not receiving discounts = 100% - 65%

Percentage of customers not receiving discounts= 35%

Now let calculate Average collection period

Average collection period = (65% * 15) + (35% *90)

Average collection period = 9.75 + 31.5

Average collection period= 41.25 days

Therefore the Average collection period is 41.25 days

2. Calculation to determine the Receivable Turnover using this formula

Receivable Turnover = 365 / Average collection period

Let plug in the formula

Receivable Turnover = 365/41.25

Receivable Turnover = 8.84848485

Therefore the Receivable Turnover is 8.84848485

3. Calculation to determine the amount of the company’s average receivables

First step is to calculate the Total Credit Sales

Total Credit Sales = $6,500 * $710

Total Credit Sales= $4,615,000

Now let calculate the Average Receivable using this formula

Average Receivable =Credit sales / Receivable turnover

Let plug in the formula

Average Receivable= $4,615,000 /8.84848485

Average Receivable= $521,558.22

Therefore Average Receivable is $521,558.22

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marusya05 [52]

The reason that the elasticity of demand is 0.62 for business and 0.12 for economy is because the economy class is more elastic than that of the business.

When the flight ticket of those flying business class is raised, they would not be affected much because they are rich and can afford it. They do not care much about the raise in price.

For the average flyer using the economy flight, raising the price of the ticket would affect him and he may end up reducing his demand for it.

Read more on brainly.com/question/10423637?referrer=searchResults

5 0
3 years ago
The basic organizing legal document for a home-rule city is called the
Alex777 [14]
The basic organizing legal document for a home rule city is called the CITY STATUE.
Home rule refers to the government of a city, colony or an independent country by its own citizens. A general law municipality usually become eligible for home rule when the population of the people living there is more than 5,000. The law which govern the activities of those in the home rule city is called statue.
4 0
3 years ago
The bank is considering paying interest to customers carrying daily checking account balances in excess of a certain amount. If
olya-2409 [2.1K]

Answer:

If the amount is 1 for example,

And the bank does not want to pay more than 4%, then the amount will be,

4/100 ×1= 0.04

5 0
3 years ago
You plan to save $1,400 for the next four years, beginning now, to pay for a vacation. If you can invest it at 6 percent annuall
vekshin1

Answer:

FV= $6,124.46

Explanation:

Giving the following information:

You plan to save $1,400 for the next four years, beginning now, to pay for a vacation. If you can invest it at 6 percent annually,

Annual deposit= $1,400

Number of periods= 4 years

Interest rate= 6%

<u>To calculate the future value, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {1,400*[(1.06^4) - 1]} / 0.06

FV= $6,124.46

6 0
3 years ago
Grum Corp., a publicly owned corporation, is subject to the requirements for segment reporting.
Orlov [11]

Answer:

Option (d) $5,000,000

Explanation:

Data provided in the question:

Reported revenues = $50,000,000

Operating expenses = $47,000,000

Net income = $3,000,000

Payroll costs included in the operating expenses = $15,000,000

Combined identifiable assets of all industry segments = $40,000,000

Now,

If the revenue derived from sales to any single customer is 10% or more of the revenue of an enterprise then the amount of revenue from each customer shall be disclosed.

Therefore,

Grum should disclose major customer data if

sales to any single customer amount at least = 10% of Reported revenues

= 10% of $50,000,000

= $5,000,000

Option (d) $5,000,000

7 0
3 years ago
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