Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Receivables investment McEwan Industries sells on terms of 3/10, net 40. Total sales for the year are $661,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 84 days after their purchases. Assume 365 days in year for your calculations.
What is the days sales outstanding? Round your answer to two decimal places.
What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate calculations.
What is the percentage cost of trade credit to customers who take the discount? Round your answers to two decimal places.
What is the percentage cost of trade credit to customers who do not take the discount and pay in 84 days? Round your answers to two decimal places. Do not round intermediate calculations.
Nominal cost: %
Effective cost: %
What would happen to McEwan’s accounts receivable if it toughened up on its collection policy with the result that all nondiscount customers paid on the 40th day? Round your answers to two decimal places. Do not round intermediate calculations.
DSO = days
Average receivables = $
An investment portfolio has a 30% chance of earning $100,000 in a year, a 40% chance of earning $50,000, a 15% chance of earning nothing and 15% chance of losing $20,000. What is its expected return?
Kim Corporation has two major divisions: Northern Products and Southern Products. It provides the following information for the year 2014 Northern Products Division Southern Products Division Sales revenue $140,000 $1,040,000 Operating income $46,400..
Which celebrity would you use to endorse Diet Pepsi in attempts to reach a ‘different’ target group? Who might you use for regular Pepsi? Diet Coke? Coke Classic? Sprite? Explain and justify your choice for each.
A stock has a required return of 9%. The risk-free rate is 5% and the market risk premium is 3%. What is the stock's beta? If the market risk premium increased to 4%, what would happen to the stock's required rate of return? VeggieStrips has been gro..
A firm's stock currently sells for $57.27. The firm just paid a dividend $4.68. If the required rate of return on the firm's stock is 13.9%. what is the market's expectation of the firm's constant future growth rate?
Assume an opportunity cost of 10%, what should you do under the trade credit terms, 2/10, net 45? If the annualized effective cost of missing the trade credit discount is 15.05%, the length of discount period is 15 days, and the length of the net-tra..
Bennington Industrial Machines issued 142,000 zero coupon bonds seven years ago. The bonds originally had 30 years to maturity with a yield to maturity of 7.2 percent. Interest rates have recently increased, and the bonds now have a yield to maturity..
ABC Company purchased a new machinery 4 years ago for $62,639. Today, it is selling this equipment for $24,229. What is the after-tax salvage value if the tax rate is 28 percent? The MACRS allowance percentages are as follows, commencing with year on..
Assume that a $1,000,000 par value. semiannual coupon U.S. Treasury note with two years to maturity (YTM) has a coupon rate of 5%. The yeild to maturity of the bond is 8.80%. Using this information and ignoring the other cosr involved, calculate the ..
Can any ratio or combination of ratios predict a company's long-term viability? Can you think of an example whereby one ratio incorrectly looks "good" only because another ratio is "bad"?
For a $24,000 student loan with a 6% APR, how much of the payment will go toward the principal and how much will go toward paying interest for each of the first six payments? Assume this is a 10-year loan with monthly payments.
You have a 10 year loan for $20,000 and you make annual payments. The interest rate is 5% annual compounded quarterly. What are your annual payments? If the inflation rate is 3% annual compounded monthly, what is the purchasing power of your final pa..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd