Question

Problem 9-09 If a firm has sales of $22,988,000 a year, and the average collection period for the industry is 60 days, what s

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Average collection period=(Accounts receivable/Sales)*365 days

60=(Accounts receivable/22,988,000)*365

Accounts receivable=(60*22,988,000)/365

=$3778849(Approx).

Add a comment
Know the answer?
Add Answer to:
Problem 9-09 If a firm has sales of $22,988,000 a year, and the average collection period...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • If a firm has sales of $25,152,000 a year, and the average collection period for the...

    If a firm has sales of $25,152,000 a year, and the average collection period for the industry is 30 days, what should this firm’s accounts receivable be if the firm is comparable to the industry? Assume there are 365 days in a year. Do not round intermediate calculations. Round your answer to the nearest dollar. $  

  • Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 73 days, an average collection...

    Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 73 days, an average collection period of 40 days, and a payables deferral period of 37 days. Assume that cost of goods sold is 80% of sales. Assume 365 days in year for your calculations. 1. What is the length of the firm's cash conversion cycle? days 2. If Negus's annual sales are $3,437,675 and all sales are on credit, what is the firm's investment in accounts receivable? Round...

  • Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 72 days, an average collection...

    Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 72 days, an average collection period of 48 days, and a payables deferral period of 24 days. Assume that cost of goods sold is 80% of sales. Assume a 365-day year. Do not round intermediate calculations. a. What is the length of the firm's cash conversion cycle? Round your answer to the nearest whole number. days b. If annual sales are $4,818,000 and all sales are on credit, what...

  • Problem 16-11 Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 70 da...

    Problem 16-11 Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 70 days, an average collection period of 48 days, and a payables deferral period of 38 days. Assume that cost of goods sold is 80% of sales. Assume 365 days in year for your calculations. What is the length of the firm's cash conversion cycle? days If Negus's annual sales are $3,106,575 and all sales are on credit, what is the firm's investment in accounts receivable? Round...

  • Problem 16-11 Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 58 days, an...

    Problem 16-11 Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 58 days, an average collection period of 37 days, and a payables deferral period of 31 days. Assume that cost of goods sold is 80% of sales. Assume 365 days in year for your calculations. What is the length of the firm's cash conversion cycle? days If Negus's annual sales are $3,123,300 and all sales are on credit, what is the firm's investment in accounts receivable? Round...

  • Zane Corporation has an inventory conversion period of 69 days, an average collection period of 43...

    Zane Corporation has an inventory conversion period of 69 days, an average collection period of 43 days, and a payables deferral period of 23 days. Assume 365 days in year for your calculations. What is the length of the cash conversion cycle? Round your answer to two decimal places.   days If Zane's annual sales are $2,181,245 and all sales are on credit, what is the investment in accounts receivable? Do not round intermediate calculations. Round your answer to the nearest...

  • 16. ABC Co. has an average collection period of 50 days. Total credit sales for the...

    16. ABC Co. has an average collection period of 50 days. Total credit sales for the year were $2,700,000. What is the balance in accounts receivable at year-end? (Use 360 days in a year. Do not round intermediate calculations. Round your answer to the nearest dollar amount.) $375,000 $385,000 $2,700,000 $1,350,000

  • Zane Corporation has an inventory conversion period of 83 days, an average collection period of 33...

    Zane Corporation has an inventory conversion period of 83 days, an average collection period of 33 days, and a payables deferral period of 40 days. Assume 365 days in year for your calculations. a. What is the length of the cash conversion cycle? Round your answer to two decimal places. 76 days b. If Zane's annual sales are $4,278,570 and all sales are on credit, what is the investment in accounts receivable? Round your answer to the nearest cent. Do...

  • Chik's Chickens has accounts receivable of $6,133. Sales for the year were $9,600. What is its...

    Chik's Chickens has accounts receivable of $6,133. Sales for the year were $9,600. What is its average collection period? (Use 365 days in a year. Do not round intermediate calculations. Round your final answer to the nearest whole number.) Average collection period days

  • Problem 9-11 A firm with sales of $480,000 has average inventory of $240,000. The industry average...

    Problem 9-11 A firm with sales of $480,000 has average inventory of $240,000. The industry average for inventory turnover is eight times a year. What would be the reduction in inventory if this firm were to achieve a turnover comparable to the industry average? Round your answer to the nearest dollar.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT