1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Pavel [41]
2 years ago
5

The Holiday Corporation had sales of $450 million this year. Its accounts receivable balance averaged $30 million. How long, on

average, does it take the firm to collect on its sales
Business
1 answer:
Zina [86]2 years ago
8 0

Answer:

24.3 days

Explanation:

Calculation for How long, on average, does it take the firm to collect on its sales

Using this formula

Average collection period = (Accounts receivable / Credit sales) * 365 days

Let plug in the formula

Average collection period =$30 million/$450 million *365 days

Average collection period =24.3 days

Therefore How long, on average, does it take the firm to collect on its sales is 24.3 days

You might be interested in
Alfonzo's Italian House has 25,000 shares of stock outstanding with a par value of $1 per share and a market price of $36 a shar
Liono4ka [1.6K]

Answer:

$18

Explanation:

6 0
2 years ago
What does it mean for a marketer to use an integrated promotional strategy?
Damm [24]
I feel like it is either A or B
6 0
2 years ago
Read 2 more answers
During 2016, Rao Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on
Over [174]

Answer:

$319,000

Explanation:

The computation of the liability is shown below:

= Total expenses in three year - actual warranty expenditure

where,

Total expenses in three years = Total sales × total percentage of sales

                                                = $6,200,000 × 9%

                                                = $558,000

And, the actual warranty expenditure is $239,000

Now put these values to the above formula  

So, the value would equal to

= $558,000 - $239,000

=  $319,000

6 0
3 years ago
The risk-free rate of return is 2.5 percent; the expected rate of return on the market is 7 percent. Stock X has a beta coeffici
zvonat [6]

Answer:

  • Stock is overpriced/ overvalued.
  • Sell if you own it.
  • Don't buy if you don't.

Explanation:

Use CAPM to find the required return on the stock:

Required return = Risk free rate + beta * ( Market return - risk free rate)

= 2.5% + 1.3 * (7% - 2.5%)

= 8.35%

Price based on Constant Dividend Growth Model (CDGM):

Price = Next dividend / (Required return - growth rate)

Next dividend = 1.40 * ( 1 + 4%)

= $1.456

Price = 1.456 / (8.35% - 4%)

= $33.47

<em>Stock is selling for $35. It is overvalued. Don't buy the stock. Sell if you have the stock. </em>

4 0
2 years ago
On January 1, Company A leased equipment for a six-year period. Annual lease payments are $12,000 due on December 31 of each yea
raketka [301]

Answer:

Dr Right of use asset 59,007.60

    Cr Lease liability 59,007.60

Explanation:

Variable lease payments are generally not included as right of use asset or lease liability. Even though a 60% possibility exists that an additional $5,000 will be paid, they are not based on an index and are not disguised payments (only two exceptions to this rule).

Annual lease payments = $12,000

PV annuity factor, 6%, 6 periods = 4.9173

PV of lease payments = $12,000 x 4.9173 = $59,007.60

3 0
3 years ago
Other questions:
  • Carson Company purchased a depreciable asset for $560,000. The estimated salvage value is $28,000, and the estimated useful life
    15·1 answer
  • Morganton Company makes one product and it provided the following information to help prepare the master budget: The budgeted se
    10·1 answer
  • Green Manufacturing Company produces a product that has a variable cost of $30 per unit. Fixed costs amount to $240,000. The sel
    15·1 answer
  • Building a foundation in the knowledge of consumer needs and interests will help you to
    11·1 answer
  • Today, you are buying a $1,000 face value bond at an invoice price of $987. The bond has a coupon rate of 6 percent and pays int
    12·1 answer
  • Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $5
    14·1 answer
  • On June 1, 2018, Crane Company and Cheyenne Company merged to form Ayayai Inc. A total of 876,000 shares were issued to complete
    11·1 answer
  • Which of the following is an example of internal data in a marketing
    11·1 answer
  • When a manager speaks to an employee, the employee pays the most attention to: Nonverbal communication Verbal communication
    12·1 answer
  • Percy works two part-time jobs to help pay for college classes. On Monday, he works 3 hours at the library and 2 hours at the co
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!