User Account

All Pages

What is the average amount of receivables

Assignment Help Accounting Basics
Reference no: EM132682970

RECEIVABLES INVESTMENT

McEwan Industries sells on terms of 3/10, net 30. Total sales for the year are $1,921,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 70 days after their purchases.

Question a. What is the days sales outstanding?

Question b. What is the average amount of receivables?

Question c. What is the percentage cost of trade credit to customers who take the discount?

Question d. What is the percentage cost of trade credit to customers who do not take the discount and pay in 70 days?

Question e. 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 30th day?

Reference no: EM132682970

Questions Cloud

Influence power has in leadership decision-making : Please explain or provide a example of how to I can develop, research, and explain a unique inquiry of your own, related to the influence power has
Calculate the amount of recoveries recorded : At January 1, 2022, D-341 Company reported an allowance for doubtful accounts with a $23,950 credit balance. Calculate the amount of recoveries recorded
Write a position paper on project aristotle : Write a position paper on Project Aristotle and its application to workplaces in different cultures. You are one of many completing position papers
Calculate chastain cash conversion cycle : What would Chastain's cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9.9 for 2018?
What is the average amount of receivables : What is the percentage cost of trade credit to customers who do not take the discount and pay in 70 days? What is the average amount of receivables?
Determine the cost of each capital component : LEI's expected net income this year is k34, 285.72: its established dividend payout ratio is 30%: Determine the cost of each capital component
Why bond prices fluctuate in response to changing interest : Discuss the capital asset pricing model in general, the CAPM method of determining expected returns, and how the SML can be used to help predict
Discuss tax treatment in language a non-accountant business : Susan takes a zero basis in the unrealized receivables. Will Susan recognize a capital loss on this liquidation and if so, what is the amount?
How can the mccumber model apply to the event : What parts of the NIST Cybersecurity Framework (Identify, Protect, Detect, Respond, and Recover) were weaknesses and which were strengths?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the total dividends and the dividends per share

Calculate the total dividends and the dividends per share paid to each class of stock in 2013, 2014, and 2015

  Suppose a change in manufacturing technology would allow

the following cost information is available for a single product manufactured and sold by dreamer

  What is mcdonald contribution margin ratio

How much would operating income increase if same-store sales increased by $2,500 million for the coming year, with no change in the contribution margin

  Receivables from the slow-paying clients

He explains to the board that removing the $80,000 increase in accounts receivable from current assets will increase net cash provided by operations. This approach may help Moss get the loan.

  Loss from the transaction

Blue Company sold machinery for $45,000 on December 23, 2010. The machinery had been acquired on April 1, 2008, for $49,000 and its adjusted basis was $14,200. The § 1231 gain, § 1245 recapture gain, and § 1231 loss from this transaction are:

  Calculate the residual income for the tuxedo division

The Tuxedo Division of Shamus O'Toole Company had operating income last year of $152,250,000, Calculate the residual income for the Tuxedo Division

  Describe the tax consequences for the partnership

Describe the tax consequences for the partnership and the partners. If Carol should die before the plan is executed, how would each option be affected

  Determine how to manage insurance payments

Our topic for this wiki is accounts receivable for medical practices. You can read a little about this in Chapter 6 of your book on page 92.

  Inferences of possible interest to a stockbroker

What are some inferences of possible interest to a stockbroker? How would the reliability of the inferences be assessed?

  Prepare slater income tax journal entry at the end

Slater Company reported a book value for its depreciable assets of $40,000, Prepare Slater's income tax journal entry at the end of 2016

  Explain the impact of marketing on other functional areas

What types of human resource issues should management be aware of and sensitive to when making this change in distribution methods?

  Review study of the automobile industry

Which companies might Ford Motor Company include in a benchmarking study of the automobile industry, and in which countries are those companies located?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd