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ss7ja [257]
2 years ago
11

Faldo Corp sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were $425,000, and its year-e

nd receivables were $60,000. If its DSO is less than the 45-day credit period, then customers are paying on time. Otherwise, they are paying late. By how much are customers paying early or late
Business
1 answer:
antoniya [11.8K]2 years ago
3 0

Answer:

Faldo Corp

Customers are paying late by 6.5 days (51.5 - 45)

Explanation:

DSO = Accounts Receivable/Sales last year * 365 days

= $60,000/$425,000 * 365

= 51.5 days

Customers are paying late by 6.5 days (51.5 - 45)

b) Faldo Corp's Days Sales Outstanding (DSO) is an estimate of the number of days it takes Faldo to collect its outstanding accounts receivable.  This means that DSO measures how long it takes Faldo's customers to pay an invoice.  Faldo can calculate its DSO by dividing the total accounts receivables of last year by the total credit sales of last year.  This is then multiplied by 365 days.

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Elodia [21]

Answer:

Explanation:

1) Schedule of cash receipts:

Since 100% of account receivable is collected in the month following the month of sale, which means $290,000 will be collected in July.

2)  If there are no sales in September, amount of accounts receivable the company will report on its 3rd quarter balance sheet will be 0. Otherwise, the ending accounts receivable at the end of 3rd quarter will be = sales amount in September.

8 0
3 years ago
Read 2 more answers
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Mariana [72]

Answer:

Explanation:

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create calendars and schedules, manage project budgets, and enable file sharing

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5 0
3 years ago
Calculate the percentage rate management fees on the following: $575 adjusted per-unit fee, 50 total units, $600,000 annual gros
arlik [135]

Answer:

19.1% management rate.

Explanation:

Adjusted fee charge per unit = 575

Adjusted fee charge for total unit of product = 575 * 50 = $28750

Net after feel charge on goods = 600000 - 28750 = $571250

15% vacancy and loss rate = .15 * 571250 = $85687.5

Total management fee per year = $114437.5

Percentage rate management fee = (114437.5/600000) *100

= 19.1 %

8 0
3 years ago
A company has a processing department with 10 stations. Because of the nature and use of three of these stations, each is consid
julsineya [31]

Answer:

CC100  has $31.25 per hour

CC11O has $250 per hour

CC120 has $62.5 per hour

CC190 has $62.5 per hour

Explanation:

The IDC rate for each department would be the department IDC allocated divided by operating hours as shown below:

CC100

IDC rate=$25,000/800=$31.25 per hour

CC110

IDC rate=$50,000/200=$250 per hour

CC120

IDC rate=$75,000/1200=$62.5 per hour

CC190

IDC rate=$100,000/1600=$62.5 per hour

Judging from the IDC rates of the departments,department CCC110 seems to have the highest IDC rate per hour,which implies that each hour is charged with $250 against the CC100 where each operating hours is just $31.25.

The higher the IDC rate in a department the higher the cost of the output of that department since the cost has to be recovered from output.

7 0
3 years ago
On January 1, 2018, Como Company purchased 45% of the outstanding common shares of the Lite Company for $200,000. The net assets
NeX [460]

Answer: a. $28,000 $210,000

Explanation:

First column is income and second is Carrying value.

Carrying value is the fair value at year end = $210,000

Income = Dividend received + fair value adjustment

Fair value adjustment = Fair value - cost of shares

= 210,000 - 200,000

= $10,000

Dividend = 45% * 40,000

= $18,000

Income = 18,000 + 10,000

= $28,000

3 0
3 years ago
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