Reference no: EM132899840

Problem 1: If Hot Tubs Inc. had annual credit sales of P2,027,773 and its days sales outstanding was equal to 35 days, what was its average A/R outstanding? (Use a 365-day year.)

Option 1: P 97,222
Option 2: P 57,143
Option 3: P194,444
Option 4: P 5,556

Problem 2: The ordering costs related to a product are P12.50 per order. The cost of carrying one item of inventory for one year is P16. The business sells 40,000 units of the product evenly throughout the year. At EOQ, total ordering costs per year and total carrying costs per year, respectively, must be

Option 1: P2,000 ; P2,000
Option 2: P4,000 ; P4,000
Option 3: P1,562.50 ; P2,560.00
Option 4: P1,562.50 ; P1,562.50