Take the firm to collect its accounts receivable

Assignment Help Financial Management

Reference no: EM131972515

1. On July 15th, you purchased $10,000 worth of goods. The terms of the sale were 4/5, net 44. What is the effective annual rate of interest for the credit period for this sale?

2. ABC Company has annual sales of $485,748 and cost of goods sold of $198,600. The average accounts receivable balance is $74,256. How many days on average does it take the firm to collect its accounts receivable? Assume 365 days.

3. Compute the Accounts Payable (A/P) period based on the following information: Average A/P balance = $64,059 Annual Cost of Goods Sold = $430,360 Assume 365 days.

Reference no: EM131972515

Questions Cloud

When computed against the market portfolio : HSCC, a wholly owned subsidiary of Novel Inc. has a beta of 1.2 when computed against the market portfolio

Which of the will increase the operating cycle : Identify which of the following will increase the operating cycle. Choose only one.

What is the firm effective cost of borrowing : Assume all accounts are collected in full. What is the firm's effective cost of borrowing?

Determine company beta-assume stock is correctly priced : If the expected stock market return is 15% and the T-bill rate is 4%, determine the company's Beta. Assume the stock is correctly priced.

Take the firm to collect its accounts receivable : The average accounts receivable balance is $74,256. How many days on average does it take the firm to collect its accounts receivable?

Assume varying required rate of return for the stock : Does the Gordon model assume a varying required rate of return for the stock; that is, the required rate of return changes from period to period?

What is the term structure of interest rates : What is a bond indenture and what are some of the important features? What is the term structure of interest rates?

When implementing the markowitz portfolio selection model : What do you think is the biggest hurdle when implementing the Markowitz portfolio selection model? Briefly discuss how you address the problem.

Value of the forward contract on the bond to long position : Determine the forward price. Calculate the value of the forward contract on the bond to the long position.

User Account

All Pages