An increase in firms average collection period

Assignment Help Financial Management
Reference no: EM13872363

An increase in a firm's average collection period (average accounts receivable period) generally indicates that:

a. customers are paying more promptly.

b. the cash flows of the firm have increased.

c. at least some customers are taking longer to pay.

d. an increased number of customers are taking advantage of the cash discount.

e. the sales of the firm are increasing.

Reference no: EM13872363

Questions Cloud

Prepare the journal entryies at the date of purchase : Prepare the journal entry(ies) at the date of purchase. Prepare an amortization schedule for the installment agreement.
Calculate the elasticity of fx with respect to ur : Calculate the elasticity of FX with respect to UR
Side of a vertical cylindrical water tank : You drill a small hole in the side of a vertical cylindrical water tank that is standing on the ground with its top open to the air.
Decrease the length of time a company will extend credit : Which one of the following will tend to decrease the length of time a company will extend credit?
An increase in firms average collection period : An increase in a firm's average collection period (average accounts receivable period) generally indicates that:
Traditional and nontraditional life insurance products : Compare the difference between traditional and nontraditional life insurance products by explaining the financial disintermediary.
Most common evidence of debt : Which one of the following would be the most common evidence of a debt when a sale is made on open account? Select one: a. Commercial draft b. Sight draft c. Banker's acceptance d. Promissory note e. Invoice
Prepare journal entries needed on the book of marvel company : Prepare the journal entries needed on the books of Marvel Company at each of the following dates: August 30, 2014; December 1, 2014; and December 31, 2014.
What is the bond yield rate per period : A bond has a face (par) value of $14,445; it will mature in 5 years. The bond coupon rate is 1.5%; there are 9 premium payments per year. If the bond is purchased for 93.39% of its face value and later sold at its face value, what is the bond yield r..

Reviews

Write a Review

Financial Management Questions & Answers

  The annual provision for bad debt is recorded

The annual provision for bad debt is recorded as 5% of ending A/R (317,420). Use the allowance method. Round to the nearest $1. Interest has accrued at 6.5% on the long-term notes payable (1,200,000) since July 1 of this year.

  Calculate stars weighted average cost of capital for each

Star Products Company is a growing manufacturer of automobile accessories whose stock is actively traded on the over-the-counter (OTC) market. During 2012, the Dallas-based company experienced sharp increases in both earnings and sales. Calculate Sta..

  What is the return from this investment

A parent decides to buy a two bedroom condo for $65,000 by putting 10% down and financing the rest for 15 years at an annual rate of 3.5%. What is the monthly payment? One bedroom is rented out to a roommate for $400 a month (payment received at the ..

  What is present value of perpetual stream of cash flow

What is the present value of a perpetual stream of cash flows that pays $7,000 at the end of year one and the annual cash flows grow rate at a rate of 4% per year indefinitely, if the appropriate discount rate is 11%? What if the appropriate discount..

  Rate-based decision statistic measures the excess return

Which rate-based decision statistic measures the excess return–the amount above and beyond the cost of capital for a project, rather than the gross return?

  Defines the cash cycle

Which one of the following defines the cash cycle?

  Dividend is expected to grow at some constant rate

You are considering an investment in Keller Corp's stock, which is expected to pay a dividend of $1.50 a share at the end of the year (D1 = $1.50) has a beta of 0.9. The risk-free rate is 4.6%, and the market risk premium is 5.0%.

  What should be the increase in earnings per share

Last year, Cayman Corporation had sales of $7,000,000, total variable costs of $3,000,000, and total fixed costs of $1,500,000. In addition, they paid $480,000 in interest to bondholders. Cayman has a 35% marginal tax rate. If Cayman's sales increase..

  Find the optimal size of its milk storage tank

Fuller Ice Cream Company buys 73,000 gallons of milk annually. Due to state regulations, it cannot store the milk for more than 8 days. Find the optimal size of its milk storage tank. The price of milk is $3 per gallon, and the cost of capital for Fu..

  Q1 circle the right statementa in the statement of cash

q1. circle the right statementa. in the statement of cash flows a reduce in inventories is reported as a use of cash.

  What is the value of the stock ex rights

Knight Inventory Systems, Inc., has announced a rights offer. The company has announced that it will take three rights to buy a new share in the offering at a subscription price of $50. At the close of business the day before the ex-rights day, the c..

  Expected dividend and growth in dividends

Messman Manufacturing will issue common stock to the public for $40. The expected dividend and growth in dividends are $3.50 per share and 3%, respectively. If the flotation cost is 9% of the issue's gross proceeds, what is the cost of external equit..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd