Answer:
a. 0.06
b. 0.18
Explanation:
a) all of them will be repaid
b) none of them will be repaid
P1 = 0.6, P2= 0.4, P3 = 0.25
a. The Probability that all will be repaid = (P1∩P2∩P3)
= P1 * P2 * P3 (Since independent)
= 0.6*0.4*0.25
= 0.06
Thus, the Probability that all will be repaid is 0.06
b. The Probability that none of them will be repaid = (1-P1)*(1-P2)*(1-P3)
= (1-0.6)(1-0.4)(1-0.75)
= 0.4 * 0.6 * 0.75
= 0.18
Thus, the Probability that none of them will be repaid is 0.18
Remove the clutter and simplify
Answer:
$230,000
Explanation:
Given that,
Days sales outstanding, DSO = 23 days
Annual sales = $3,650,000
Assume that it uses a 365 day year
Accounts receivable = (Annual sales × Days sales outstanding) ÷ 365 days
= ($3,650,000 × 23) ÷ 365 days
= $83,950,000 ÷ 365 days
= $230,000
Therefore, the Baxley Brothers has $230,000 balance in its accounts receivable.