User Account

All Pages

What is the maximum level of accounts receivable

Assignment Help Finance Basics
Reference no: EM132381279

ALei Industries has credit sales of $157 million a year. ? ALei's management reviewed its credit policy and decided that it wants to maintain an average collection period of 35 days.

a. What is the maximum level of accounts receivable that ALei can carry and have a 35?-day average collection? period?

b. If? ALei's current accounts receivable collection period is 60 ?days, how much would it have to reduce its level of accounts receivable in order to achieve its goal of 35 ?days?

Reference no: EM132381279

Questions Cloud

Investing money in a bank account : You are currently investing your money in a bank account which has a nominal annual rate of 8 percent, compounded monthly.
What is the current book value of assets : Delta Company purchased some fixed assets four years ago at a cost of $248,000. It no longer needs these assets, so it is going to sell them today
Cash plus marketable securities : Brenmar's current assets equal $1.7 ?million, its current liabilities equal $299,500?, and it has $101,100 in cash plus marketable securities.
Determining the? firm debt? ratio : Dearborn Supplies has total sales of $204 ?million, assets of $93 ?million, a return on equity of 29 ?percent, and a net profit margin of 7.8 percent.
What is the maximum level of accounts receivable : What is the maximum level of accounts receivable that ALei can carry and have a 35?-day average collection? period?
Compute the? firm 2016 net operating income : a. Compute the? firm's 2016 net operating income and net income.
What will the aftertax salvage value be : The tax rate is 25 percent and the discount rate is 10 percent. If the equipment is sold today for $215,000, what will the aftertax salvage value be?
What is the financial break-even point : Fixed assets are depreciated using straight-line depreciation over the project's life. What is the financial break-even point?
How many units must be sold to earn operating income : Compute the new operating income if sales are 10% higher than expected. How many units must be sold to earn operating income of $187,800?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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