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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

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7. Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate i
Vadim26 [7]

Answer:

The correct answer is option (A).

Explanation:

According to the scenario, the computation of the given data are as follows:

First, we will calculate the Market risk premium, then

Market risk premium = (Required return - Risk free rate ) ÷ beta

= ( 9.50% - 4.20%) ÷ 1.05 = 5.048%

So, now Required rate of return for new portfolio = Risk free rate + Beta of new portfolio × Market premium risk

Where, Beta of new portfolio = (10 ÷ 18.5) × 1.05 + (8.5 ÷ 18.5) × 0.65

= 0.5676 + 0.2986

= 0.8662

By putting the value, we get

Required rate of return = 4.20% + 0.8662 × 5.048%

= 8.57%

4 0
3 years ago
the u.s. department of veterans affairs (va) has undertaken three separate electronic health record system upgrade projects, non
Dovator [93]

The u.s. department of veterans affairs used the waterfall software development approach would likely have benefit  because it offers wide variety to accommodate and collect data.

Software upgradation in an organisation is a bit difficult and managing them individually according to the departments and an integrated software can only accommodate and collect data properly.

The development approach here also signifies a good team of people who can actually apply software development techniques that can easily be used by everyone in the firm.

To learn more about development approach here,

brainly.com/question/4326945

#SPJ1

7 0
9 months ago
Volvo of North America delivered automobiles to the Siberian police force when Siberia had no cash to pay for them. It accepted
posledela

The Volvo of North America delivered automobile to the Siberian police force when Siberia had no cash to pay for them. It accepted by the payment in oil, which it then sold for cash to pay for media advertising in the U.S. example of <u>counter-trade</u>.

Answer: Option B

<u>Explanation:</u>

The word counter trade means it is an exchange goods or services which are paid for wholly or partly with other goods or services either than with money. However, counter trade used for accounting purposes. In this case counter trade deals between sovereign states.

7 0
3 years ago
(tco 3) techpoint, a technical writing and business documentation firm, finds it difficult to handle its training requirements.
kotykmax [81]

<u>This is an example of "outsourcing".</u>


Outsourcing is the business routine with regards to procuring a gathering outside an organization to perform benefits and make products that generally were performed in-house by the organization's own representatives and staff. Generally done as a cost-cutting measure, it can influence occupations going from client support to assembling to the back office.  

Outsourcing can enable organizations to lessen work costs essentially by outsourcing certain assignments. Organizations can likewise dodge costs related with overhead, gear and innovation.  

4 0
3 years ago
Tiny went back to his office after the meeting and began to crunch the numbers on the rapid inflator. At a price of $10 per unit
Artist 52 [7]

<u>Solution and Explanation:</u>

<u> Part A </u>-   Inflatable divisions's Current Return on Investment = Yearly Earnings / Investment Cost * 100

There the Inflatable Division is Currently Earning $ 250,000 annually from an Asset base of $ 1,250,000

Therefore, ROI = 250000 / 1250000 * 100=20 \%

<u>Part B -   </u>Let the maximum variable cost be X.

Given that - 1. Selling Price per Unit = $10 , 2. No of Units to be produced = 40000 , 3. Annual Fixed Cost = $ 140000

Therefore ,   ROI = Current Earning + New Earning / Current Assets + New Assets

20% = 250000+[(10-\mathrm{X}) * 40000-\underline{140000}] / 1250000+100000

Solve for X getting, X = 6

Therefore maximum variable cost it can incur without change in current ROI is $ 6 per unit  

Resulting Contribution Margin per Unit = SP - VC = $10 minus $6 = $4 per unit

<u> part C -</u>   Minimum Transfer Lightning division Should charge

Given Information - Capacity of Lightning division is 150000 units and Utilized capacity is 135000 units. Therefore Spare capacity is 15000 units .Also Market Price of Product of Lightning division is $ 5 and Variable cost is $3 per unit.

So for the First 15000 units of Requirement of Inflatable division - Transfer Price should be Variable cost i.e $ 3 per unit because Lightning division has spare capacity in this.

For the next 25000 units of requirement of Inflatable division - Transfer Price should be Market Price i.e $ 5 per unit as Lightning division has to reduce is external sale.

Therefore Minimum TP = 15000 * 3+25000 * 5 / 40000=\$ 4.25 per Unit

<u>Part D -  </u>No, Here Tiny offers to transfer $4 ( $6 - $2 ) per unit to Lightning division. However  the minimum TP Lightning should get is 4.25 per unit and if less than this TP is offered by Tiny it will lead to loss in the Lightning Division.

3 0
3 years ago
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