Determine average daily credit sales

Assignment Help Business Management

Reference no: EM1378391

Question: Miranda Tool Corporation sells to retail hardware stores on credit terms of "net 30." Yearly credit sales are $18 million and are spread evenly throughout the year. The company's variable cost ratio is 0.70, and its accounts receivable average$1.9 million. Using this information, determine the following for the company:

a. Average daily credit sales
b. Average collection period
c. Average investment in receivables

Reference no: EM1378391

Questions Cloud

Decreasing morality rates : Suppose if expenditures on medical services are less effective in decreasing mortality rates than are changes in lifestyle behavior, why does United States continue to spend an rising portion of its resources on medical care?

Question about product development : The manager of my firm is deciding whether to construct a brand new item not yet seen in the marketplace or a version of a competitor's product that has already been launched into marketplace.

Discuss the effective implementation : The customer requires an overview of how classic management activities -organizing, controlling, and planning - enable successful strategy implementation.

Discuss the basis for the crisis : Address the Bridgestone or Firestone- tire shredding crisis. Research Bridgestone or Firestone's item crisis and consider alternative solutions

Determine average daily credit sales : Miranda Tool Corporation sells to retail hardware stores on credit terms of "net 30." Yearly credit sales are $18 million and are spread evenly during the year.

Moderate-length essay on western civilization : Prepare a presentation and a moderate-length essay on a topic in Western Civilization

Radical redesign of business processes : Is reengineering just another management fad or does it offer something of lasting value? Explain specific conditions in which you would or would not suggest reengineering as a potential strategy.

Small business opportunities available today : Discuss the best small-business opportunities available today and report on the two and then compare and contrast which would be the best overall.

Australias participation in war : The British Empire was seen as central to Australia's participation in war, however, Britain is no longer considered central to Australia's commemoration of its involvement in war.

User Account

All Pages