What is the average book value of accounts receivable

Assignment Help Financial Accounting
Reference no: EM132857290

Questions -

Q1) Sakinah Sdn Bhd offers credit terms of 3/4, net 15. Based on experience, 89 percent of all customers will take the discount. The firm sells 356 units each month at a price of RM643 each. What is the average book value of accounts receivable? Assume a 365-day year.

A) RM40,274.34

B) RM68,272.23

C) RM39,209.12

D) RM27,012.34

Q2) At present, Iskandar sells 59 units quarterly at an average price of RM359 a unit. The firm thinks it can increase sales by an additional 25 units per quarter if it switches to a net 25 credit policy. The monthly interest rate is 0.43 percent and the variable cost per unit is RM116. What is the incremental cash inflow of the proposed credit policy switch?

A) RM10,120

B) RM6,075

C) RM12,760

D) RM 7,810

Q3) Munip's Enterprise is considering a change in its cash-only sales policy. The new terms of sale would be net three (3) month. The required return is .85 percent per month. Currently, the firm sells 305 units per month at RM650 per unit. Under the new policy, the firm expects sales of 455 units also at RM650 per unit. The variable cost per unit is RM326. What is the NPV of switching?

A) RM5,228,750.50

B) RM5,470,497.06

C) RM4,335,021.60

RM4,238,250.34

Q4) Suzy can make a one-time sale if she will grant a new customer 45 days to pay. Her customer wants to purchase an item with a sales price of RM530 and a variable cost of RM300. Suzy estimates the probability of default at 25 percent. The monthly interest rate is 0.54 percent. Should she grant credit to her customer? Why or why not?

A) Yes; because the NPV of the potential sale is RM53.05

B) Yes; because the NPV of the potential sale is RM44.09

C) Yes; because the NPV of the potential sale is RM95.37

D) No; because the NPV of the potential sale is -RM33.05

Reference no: EM132857290

Questions Cloud

Describe your understanding of big data : Describe your understanding of big data and give an example of how you've seen big data used either personally or professionally.
Windows hardening recommendations : you have been instructed to ensure that Windows authentication, networking, and data access are hardened. This will help to provide a high level of security.
What discount must manufacturer B give the retailer : Manufacturer B has a list price of 17.00, what discount must manufacturer B give the retailer to match the price of manufacturer A
What is the list price of the computer : Question - The net price of a computer after a trade discount of 33% is 661.96, what is the list price of the computer
What is the average book value of accounts receivable : The firm sells 356 units each month at a price of RM643 each. What is the average book value of accounts receivable? Assume a 365-day year
Data warehouse architecture : Explain the major components of a data warehouse architecture, including the various forms of data transformations needed to prepare data
Cybersecurity investigations and jurisdiction. : What are the differences between the following jurisdictions: Local, State, Federal, International, and Military?
How much revenue do you record at that point : When can revenue for the conference be recorded on your organization's income statement? How much revenue do you record at that point
What is the discounted price : Marissa just purchased RM35,911 of goods from its supplier with credit terms of 2/6, net 30. What is the discounted price

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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