Milwaukee surgical suppliesinc sells on terms of 310 net 30

Reference no: EM13396582

Milwaukee Surgical Supplies,Inc sells on terms of 3/10, net 30. Gross sales for the year are $1,200,000, and the collections department estimates that 30% of the customers pay on the tenth day and take discounts, 40% pay on the thiritieth day and the remaining 30% pay,on avg,40 days after the purchase.

a. what is the firm's avg collection period?
b. what is the firm's current receivables balance?
c. what would be the firm's new receivables balance if Milwaukee Surgical toughened up on its collection policy with the result that all nondiscount customers paid on the 30th day?
d. suppose that the firm's cost of carrying receivables was 8% annually. how much would the toughened credit policy save the firm in annual receivables carrying expense?This question 16.5 a –d needs to show how answers were calculated. Also I need the below listed memo assignment completed that is based on the calculations listed above.

Reference no: EM13396582

Questions Cloud

Choose the two 2 segments of the general environment that : choose an industry you have not yet written about in this course and one publicly traded corporation within that

Bonnie paid 9500 for corporate bonds that have a par value : bonnie paid 9500 for corporate bonds that have a par value of 12000 and a coupon rate of 9 percent payable annually.

Be sure to create open-ended questions and follow up : create an eight-point questionnaire covering the followingnbspnbspnbsp international experiencenbspnbspnbsp

Why do most successful societies present patents and : 1.what important characteristics do all three types of imperfect competitive firms share?2.why is marginal revenue

Milwaukee surgical suppliesinc sells on terms of 310 net 30 : milwaukee surgical suppliesinc sells on terms of 310 net 30. gross sales for the year are 1200000 and the collections

Using this flowchart explain the significance of the : choose a real-life service organisation that you are familiar with.prepare a flowchart of the back-stage as well as the

Determine the eliminating entries necessary for the 20x9 : package plus inc. has 2000000 of 10 bonds outstanding on december 31 20x8. on january 1 20x9 wrapit corporation an

Write down the methods which labor unions use to increase : what are the methods that labor unions use to increase the wage rates of their members above the levels of nonunion

Write about the following in regards to a fine foods : write about the following in regards to a fine foods grocery shop pursuing an international organizationeffects of

User Account

All Pages