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grin007 [14]
2 years ago
8

The financial statements of Georgi Manufacturing Company report net sales of $595,000and accounts receivable of $80,000 and $60,

000 at the beginning and end of the year,respectively. What is the average collection period for accounts receivable in days?
Business
1 answer:
Elena-2011 [213]2 years ago
7 0

Answer:

43 days

Explanation:

The first step is to calculate the account receivable turnover

= $595,000/($80,000+$60,000)/2

= 595,000/140,000/2

= 595,000/70,000

= 8.5

Therefore the average collection period can be calculated as follows

= 365 /8.5

= 42.9

= 43 days

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2 years ago
The difference between the actual cost incurred and the standard cost is called the?
Taya2010 [7]

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4 0
1 year ago
What should be the current price of a share of stock if a $5 dividend was just paid, the stock has a required return of 20%, and
Gala2k [10]

Answer:

Current Price of the Share Stock is $ 37.86 (D)

Explanation:

Using dividend valuation method with a constant growth rate assumption, share price is calculated as : Po =D1/(Ke-g).

Where;  Po ⇒Market Value excluding any dividend currently payable

            D1= Do(1+g)⇒Expected dividend in one year's time

            Ke =Required rate of return by shareholders

             g= Dividend growth rate

<u>Calculation</u>

D1 = 5(1+0.06)= $5.3

Hence, Po= 5.3/(0.20-0.06)

            Po=$37.86

The share price is expected to reflect the future expected stream of income i.e  dividends and capital gains ,discounted at an appropriate cost of capital.

Some of the assumptions of dividend valuation method include but not limited to the following:

- it assumed that investors act rationality and in the same way ;

-the dividend either show growth or no growth;

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5 0
3 years ago
Juana looked at her September issue of O magazine and did not see anything of interest. However, after her mother was diagnosed
777dan777 [17]

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7 0
3 years ago
Exercise 2.2 Preparing a Balance Sheet (LO2-4)
solmaris [256]

Answer:

Explanation:

The corrected sheet is given below

WILLIS TRANSPORTATION SERVICE

Balance sheet

Feb-28

Assets

Cash 74000

Accounts Receivable 72000

Supplies 14000

Land 70000

Buildings 90000

Automobiles 175000

Total 495000

Liabilities & Owners' Equity

Liabilities:

Notes payable 281000

Accounts Payable 58000

Total Liabilities 339000

Owners Equity:

Capital Stock 94000

Retained earnings 62000

Total 495000

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2 years ago
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