User Account

All Pages

What minimum average collection period is required

Assignment Help Finance Basics
Reference no: EM131109286

Klein's Tools is considering offering a cash discount to speed up the collection of accounts receivable. Currently the firm has an average collection period of 65 days, annual sales are 35,000 units, the per-unit price is $40, and the per-unit variable cost is $29. A 2% cash discount is being considered. Klein's Tools estimates that 80% of its customers will take the 2% discount. If sales are expected to rise to 37,000 units per year and the firm has a 15% required rate of return, what minimum average collection period is required to approve the cash discount plan?

Reference no: EM131109286

Questions Cloud

Workforce along with a marketing strategy to your plan : It is time to assign a workforce along with a marketing strategy to your plan. At the end, a presentation generally concludes with a look ahead, so that will be the last portion of the plan.
Prepare campbell soup companys journal entry : For 2007, Campbell Soup Company had pension expense of $32 million and contributed $32 million to the pension fund. Prepare Campbell Soup Company's journal entry to record pension expense and funding.
Mass of ammonium chloride : What mass of ammonium chloride should be added to 2.55 L of a 0.165 MNH3 in order to obtain a buffer with a pH of 9.45?
The feed back from the science project : This is the feed back from the science project from last week. Let me know if I need to send the paper back to you. Let me know price for the updates.
What minimum average collection period is required : Klein's Tools estimates that 80% of its customers will take the 2% discount. If sales are expected to rise to 37,000 units per year and the firm has a 15% required rate of return, what minimum average collection period is required to approve the cash..
Prerequisite information for modules : STAGE 2 - XML/XQueryConstruct XML representations for the following. Express your design using a diagram and/or a schema.1. Composition of courses, i.e. a list of the modules that make up a course. You may assume that the composition of a course does..
Reaction occurs at constant pressure : Suppose that 0.330 mol of methane, CH4(g), is reacted with 0.480 mol of fluorine, F2(g), forming CF4(g) and HF(g) as sole products. Assuming that the reaction occurs at constant pressure, how much heat is released? Express your answer numerically ..
Prepare a pension worksheet for beatty company for 2010 : During 2010, service cost was $27,500, the settlement rate was 10%, actual and expected return on plan assets were $25,000, contributions were $20,000, and benefits paid were $17,500. Prepare a pension worksheet for Beatty Company for 2010.
Create a chart showing milestones in memory growth : Create a chart showing milestones in memory growth and the approximate date

Reviews

Write a Review

Finance Basics Questions & Answers

  Tuttle enterprises is considering a project that has the

tuttle enterprises is considering a project that has the following cash flow and required return data. what is the

  Important people in finance

Write a short paper about one of the following important people in finance. Discuss their contribution to finance, or in the case of the more infamous ones, the issues that caused them to run afoul of the law. Include references.

  Stock current value per share

The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock, rs, is 17%. What is the stock's current value per share?

  How much must be deposited now

If the parent decides instead to deposit a lump sum now in order to attain the goal of $250,000 in 13 years, how much must be deposited now?Amount = __________________________(dollars)

  How the information contained in the annual reports

Compare and contrast the information contained in the annual reports you were assigned. Explain how the information contained in the annual reports relate to the image you have of the organization as a whole

  What is the new exchange rate

Suppose the pound-dollar exchange rate is1.3500. Then, the US dollar increases in value by 5%. What is the new pound-dollar exchange rate? What is the new exchange rate if the US dollar appreciates by 10%.

  The illinois lottery has an instant game that promises 25

the illinois lottery has an instant game that promises 25 top prizes of 1 million each. in the small print it says that

  What is the yield to maturity for these bonds

Rogue Racing Inc. has $1,000 par value bonds with a coupon rate of 8% per year making semiannual coupon payments. If there are twelve years remaining prior to maturity and these bonds are selling for $876.40, what is the yield to maturity for thes..

  What rate of return will be earned by an investor who

a bond that pays coupons annually is issued with a coupon rate of 8 maturity of 15 years and a yield to maturity of 11.

  Estimate the cost of this acuisition to the shareholders

The book value of interest-bearing liabilities on the balance sheet of Dow Jones was $1.46 billion. Estimate the cost of this acuisition to the shareholders of Newscorp.

  No shortages are allowed and the company consists of 5

the demand forecast for the next four periods is 80 110 120 and 145 units respectively. the plant has a regular

  Lanny and shirley are recently divorced and do not live

lanny and shirley are recently divorced and do not live together. shirley has custody of their child art and lanny pays

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