Determine the average investment in accounts receivable

Assignment Help Financial Accounting
Reference no: EM132948715

Question - Pretty lady cosmetic products has an average production process time of 40 days. Finished goods are kept on hand an average of 15 days before they are sold. accounts receivable are outstanding an average of 35 days,  and the firm receives 40 days of credit on its purchases from suppliers. Assume net sales of $1,200,000 and cost of goods sold of $900,000. Determine the average investment in accounts receivable, inventories, and accounts payable. What would be the net financing need considering only these three accounts?

Reference no: EM132948715

Questions Cloud

What is the project initial outlay : A company is considering purchasing a machine for $100,000. Shipping costs would be another $5,000. What is the project initial outlay
What percentage decline in earnings before interest : What percentage decline in earnings before interest and taxes could natural selection have to stay before filling to cover
What is the current market value of each : The current ordinary share price of Toko Co is 3.50 € and this is expected to grow at 4% p.a. What is the current market value of each
Calculate the activity rates that be used to assign costs : Zapato Company produces two types of boots: vaquero and vaquera. Calculate the activity rates that would be used to assign costs to each product
Determine the average investment in accounts receivable : Assume net sales of $1,200,000 and cost of goods sold of $900,000. Determine the average investment in accounts receivable, inventories
Differences between general purpose and special purpose : Question - Explain the essential differences between General purpose and special purpose of governments and give several examples of each
How much gain plainwell ice cream corporation recognize : The property was subject to a $600,000 mortgage, which Luis assumed. How much gain, if any, does Plainwell Ice Cream Corporation recognize
How much money you need to pay to bank : If you wanted to settle your loan after 25 instalments you have to pay 1.5% extra settlement charge. So how much money you need to pay to Bank
What the return on assets are : Question - If an all-equity financed firm has a 8% return on equity and an asset turnover ratio of 2% then what the return on assets are

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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