Answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alona [7]
1 year ago
10

Below are amounts (in millions) from three companies' annual reports. Beginning Accounts Receivable Ending Accounts Receivable N

et Sales WalCo $1,735 $2,682 $314,427 TarMart 5,766 6,294 59,878 CostGet 549 585 60,963 Required: 1. Calculate the receivables turnover ratio and the average collection period for WalCo, TarMart and CostGet. (Do not round intermediate calculations. Enter your answers in millions. Round your "Average accounts receivable" and "Receivables turnover ratio" answers to one decimal place.)
Business
1 answer:
alexandr402 [8]1 year ago
4 0

Answer:

(1) 142.37;  2.56 days

(2) 9.93; 36.76 days

(3) 107.52; 3.39 days

Explanation:

(1) For WalCo,

Average accounts receivables:

= (Opening AR + Closing AR) ÷ 2

= ($1,735 + $2,682) ÷ 2

= 2,208.5

Receivables turnover ratio:

= Net Sales ÷ Average accounts receivable

= $314,427 ÷ 2,208.5

= 142.37

Average collection period:

= 365 ÷ Receivables turnover ratio

= 365 ÷ 142.37

= 2.56 days

(2) For TarMart,

Average accounts receivables:

= (Opening AR + Closing AR) ÷ 2

= ($5,766 + $6,294) ÷ 2

= 6,030

Receivables turnover ratio:

= Net Sales ÷ Average accounts receivable

= $59,878 ÷ 6,030

= 9.93

Average collection period:

= 365 ÷ Receivables turnover ratio

= 365 ÷ 9.93

= 36.76 days

(3)  For CostGet,

Average accounts receivables:

= (Opening AR + Closing AR) ÷ 2

= ($549 + $585) ÷ 2

= 567

Receivables turnover ratio:

= Net Sales ÷ Average accounts receivable

= $60,963 ÷ 567

= 107.52

Average collection period:

= 365 ÷ Receivables turnover ratio

= 365 ÷ 107.52

= 3.39 days

You might be interested in
What is the difference between ordinal utility and cardinal​ utility? Ordinal utility refers to A. satisfaction when consumers a
adoni [48]

Answer:

I strongly believe that the correct answer is B. Im going to give an example. if we take into account a company like Honda produces 4000 units, for example Mercedes Benz produces 7000 units, this is very important for welfare economics which tries to put values on consumption.

Explanation:

5 0
1 year ago
Treasure Mountain International School in Park City, Utah, is a public middle school interested in raising money for next year’s
Genrish500 [490]

Answer:

3%

Explanation:

The annual percentage yield (APY) can be described as the real rate of return that earned on an investment or savings deposit while considering the compounding interest impact. The APY formula is as follows:

Annual Percentage Yield (APY) = (1 + Periodic rate)^n - 1

Where n denotes the number of period. Therefore, for this question, we have:

Annual Percentage Yield (APY) = (1 + 0.03)^1 - 1 = (1.03)^1 - 1 = 1.03 - 1 = 0.03, or 3%.

Therefore, the APY earned is 3%.

3 0
1 year ago
Why are Americans dependent of what is produced in other countries
jok3333 [9.3K]

Answer:

Climate, resources, cheap labor and outsourcing of manufacturing jobs.

Explanation:

As a developed country, labor cost are higher in the US in comparison to most of world. US consumers expect best price for their money. So many manufacturers have moved overseas to keep labor cost low and make a better profit while satisfying their consumers. Then mass ship items to keep cost low. Also some produced can only be grown in climates that the US doesn't have. There are some resources the US have that others countries. The mineral gold is much more plentiful in Africa but is widely used in electronics. The US is a prime buyer of electronics.

8 0
1 year ago
Isla is a marketing manager for Marshall Manufacturing. Her boss has asked her to evaluate a new product idea. One of the things
jekas [21]

Answer:

true

Explanation:

the formula used to determine the break even point in units is:

  • break even point in units = total fixed costs / contribution margin

where contribution margin = selling price - variable costs

The break even point refers to the output level where revenues = costs. Any output level above the break even point results in profits for the company, while any output level below the break even point results in losses.

4 0
1 year ago
Phillip, the proprietor of a vineyard, estimates that the first 10000 bottles of wine produced this season will fetch a profit o
Oksana_A [137]

Answer:

$61,250

Explanation:

P= (10,000+x)(5-.0002x)= 50,000 +3x -.0002x^2

dP/dx= 3- .0004x

Set equal to zero to find maximum

3-.0004x=0

x= 7,500 so max profit is 61,250

8 0
1 year ago
Other questions:
  • _____ is the process of planning and executing the conception pricing promotion and distribution of ideas goods and services to
    10·1 answer
  • You are studying in your dorm room, but your neighbor is blasting the television in the adjacent room. when you gently request t
    8·1 answer
  • Select the best answer for the question.
    10·1 answer
  • What is the maximum percentage of net spending income that should be set aside for transportation
    13·2 answers
  • 1. Organize around outcomes, not tasks. 2. Identify all the organization’s processes and prioritize them in order of redesign ur
    6·1 answer
  • For effective internal control, the purchasing manager generally should:
    7·1 answer
  • What should you plan for first when creating a budget
    14·1 answer
  • Baker Mfg Inc. wishes to compare its inventory turnover to those of industry​ leaders, who have turnover of about 13 times per y
    11·1 answer
  • The capital accounts of Harrison and Marti have balances of $160,000 and $110,000, respectively, on January 1, the beginning of
    14·1 answer
  • How do markets function in capitalist system ?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!