What is the receivables turnover

Assignment Help Financial Management

Reference no: EM131308011

Essence of Skunk Fragrances, Ltd., sells 7,100 units of its perfume collection each year at a price per unit of $510. All sales are on credit with terms of 1.5/10, net 60. The discount is taken by 45 percent of the customers. Calculate the average collection period. What is the receivables turnover? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 3 decimal places (e.g., 32.161).) What is the amount of the company’s average accounts receivable? (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).)

Reference no: EM131308011

Questions Cloud

Determine whether the farmer should purchase the machine : A farmer in Mobile decides to purchase a machine that converts manure into biogas. He has 100 cows that create a total of 40 lb of manure every day, 365 days per year. Each pound of manure can be used to produce 1 ft^3 of biogas which can be sold for..

Firm manufactures and sells high quality printers and toners : A firm manufactures and sells high quality printers and toners. Each printer sells for $790 and each toner for $70. The average user keeps the printer for 5 years and consumes 4 toners every year. Using rate of return analysis to determine if a user ..

Current rate be on three-year treasury securities : One-year Treasury bills currently earn 2.75 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 3.25 percent and that two years from now, 1-year Treasury bill rates will increase to 3.65 percent. If the unbiased ex..

Dupont analysis-what is cafe creations total assets : DuPont Analysis Last year Café Creations, Inc. had an ROA of 17%, a profit margin of 11.2%, and sales of $4.8 million. What is Café Creations's total assets? Your firm has an unusual investment opportunity that is expected to provide $45,000 two year..

What is the receivables turnover : Essence of Skunk Fragrances, Ltd., sells 7,100 units of its perfume collection each year at a price per unit of $510. All sales are on credit with terms of 1.5/10, net 60. The discount is taken by 45 percent of the customers. Calculate the average co..

When deciding how much debt they can handle : The opportunities to take on debt are almost limitless. Given that it is possible tp purchase almost everything on credit, what factors should people consider when deciding how much debt they can handle? Explain why you think each factor is important..

What will the price be in six years and in thirteen years : Gilmore, Inc., just paid a dividend of $2.70 per share on its stock. The dividends are expected to grow at a constant rate of 4.5 percent per year, indefinitely. Assume investors require a return of 9 percent on this stock. What will the price be in ..

About the planning to save for retirement : You are planning to save for retirement over the next 30 years. To do this, you will invest $800 a month in a stock account and $400 a month in a bond account. The return of the stock account is expected to be 10 percent, and the bond account will pa..

Maximum amount pierre should be willing to pay for this bond : Pierre Dupont just received a cash gift from his grandfather. He plans to invest in a five-year bond issued by Venice Corp. that pays an annual coupon rate of 5.11 percent. If the current market rate is 7.12 percent, what is the maximum amount Pierre..

User Account

All Pages