What is the average collection period

Assignment Help Financial Management

Reference no: EM131920745

Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 1/10, net 30. Based on experience, 65 percent of all customers will take the discount. (Enter your answer as directed, but do not round intermediate calculations.)

Required:

(a) What is the average collection period?

Average collection period days

(b) If the company sells 1,400 forecasts every month at a price of $2,600 each, what is its average balance sheet amount in accounts receivable? (Enter your answer in dollars, not millions of dollars (e.g., 1,234,567). Round your answer to 2 decimal places (e.g., 32.16).)

Average accounts receivable $

Reference no: EM131920745

Questions Cloud

What is your payment if six-month libor : Three months from today you plan to borrow $1.8 Billion for 6 months at LIBOR. what is your payment if the 6-month LIBOR is .28% in two months?

The asset that provides you the lowest portfolio risk : Assume equal weights in Asset A and the 2nd asset you choose. You are to choose the asset that provides you the lowest portfolio risk. Which asset do you choose

Calculate NPV and IRR without mitigation : An electric utility is considering a new power plant in northern Arizona. Calculate the NPV and IRR without mitigation.

Debt–equity ratio-what is the initial cost of the plant : What is the initial cost of the plant if the company raises all equity externally?

What is the average collection period : What is the average collection period? what is its average balance sheet amount in accounts receivable?

What is each project MIRR : Calculate the crossover rate where the two projects' NPVs are equal. What is each project's MIRR?

Compare and contrast the b-s opm with the bopm : Discuss the assumption of the B-S OPM and their applicability. Compare and contrast the B-S OPM with the BOPM.

Two classes of stock authorized : Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common.

Calculating investment returns-real return on investment : You bought one of Great White Shark Repellant Co.’s 10 percent coupon bonds one year ago for $780. what was your total real return on investment?

User Account

All Pages