Estimate acme average collection period

Assignment Help Finance Basics
Reference no: EM132722581

Acme Co. is forecasting sales of between 50-60 thousand cat litter boxes in the next year, at an average wholesale price of $20 per unit. They will offer credit terms of 2/10, net 50.

Historically, about 60% of Acme's customers take the discount. If the customers are rational and don't typically pay late, was is your estimate for Acme's average collection period?

A. 10 days

B. 23 days

C. 26 days

D. 34 days

E. Impossible to estimate based on information provided.

Reference no: EM132722581

Questions Cloud

Calculate the working capital for Proper Solutions : Proper Solutions has the following balances as at October 31, 2019. Cash $23,600. Calculate the working capital for Proper Solutions
Find the duration and the modified duration of bond : Elliot Karlin is a? 35-year-old bank executive who has just inherited a large sum of money. Having spent several years in the? bank's investments? department
Explain the difference between craft and industrial unions : How changes in the structure of the economy has resulted in a decline of union membership in these types of unions in a country of your choice.
Provide the necessary journal entries to record revaluation : Provide the necessary journal entries to record the revaluation including the journal entry to account for the tax effect at 31 December 2018
Estimate acme average collection period : If the customers are rational and don't typically pay late, was is your estimate for Acme's average collection period?
Which statements is true of variable costs incurred by firms : Which statements is true of variable costs incurred by firms? These costs are the difference between what firms charge for their products and the fixed costs
Convertible bond price-cineplex : Cineplex convertible bond maturing in 2025 pays 5.75% annual coupon, can convert anytime into 90 common shares of Cineplex Inc.
How role of training specialists will change in near future : As a training specialist in an organization how should you conduct a gap analysis to find out about training needs? How the role of training specialists
What is the expected lead-time for delivery : Assuming the company uses a safety stock of 20 units resulting in a reorder point of 50 units, what is the expected lead-time for delivery

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the revised annual amortization expense

Calculate the revised annual amortization expense (in $) for the remaining years after the lawsuit.

  Present value of a perpetuity

Find out the present value of a perpetuity of $100 per year if the appropriate discount rate is 7%?

  Calculation of net present value of decision making

Calculation of Net Present Value of decision making and the mining engineers estimate a 60% chance of success and the financial staff has calculated

  Importance of proper coding

For this Assignment, you will be writing a report to the Board of Directors of Health Care Systems, Inc. regarding the importance of proper coding in order to ensure prompt reimbursement.

  Budgeted number of patient days

You have the following information: budgeted number of patient days, actual number of patient days, budgeted supply cost, actual supply cost, budgeted nursing l

  Find expected rate of return for paper company investment

A paper company invests $4m to clear a tract of land and plant some young pine trees. The trees will mature in 10 years, at which time the forest.

  Explain the importance of performance management

Explain the importance of performance management in a health care organization. Additionally, choose 1 method of performance management (e.g., team-based, 360-degree feedback, individual based), and define the concept, and provide 2-3 pros and cons o..

  Interest compounded monthly

Interest compounded monthly

  What is the price you should be willing to pay for this bond

Assume that you require a 14 percent return on a zero-coupon bond with a par value of $1,000 and six years to maturity. -What is the price you should be willing to pay for this bond?

  Differences between the federal deficit and federal debt

What are the differences between the Federal deficit and Federal Debt?

  What is the implied beta of superior international

The correlation between the Superior International Fund and the EAFE Market Index is 1.0. The expected return on the EAFE Index is 6%.

  What is the ucl

The following information and chart is data for these final inspections. Each sample represents one ship (n = 1). Create a c chart.

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