Data on Nathan Enterprises for the most recent year are shown below, along with the days...
Data on Nathan Enterprises for the most recent year are shown below, along with the days sales outstanding of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its receivables enough to reduce its DSO to the benchmarks' average. If this were done, by how much would receivables decline? Use a 365-day year.
|
Sales |
$110,000 |
|
Accounts receivable |
$16,000 |
|
Days sales outstanding (DSO) |
53.09 |
|
Benchmark days sales outstanding (DSO) |
20.00 |
Homework Answers
| Ans. | Reduction in Receivables = Old Receivables - New Receivables | |||
| 16000 - 6027 | ||||
| 9973 | ||||
| *Receivables would decline by $9973. | ||||
| Old Receivables = 16000 | ||||
| New Receivables = Benchmark DSO / No. of days in year * Sales | ||||
| 20 / 365 * 110000 | ||||
| 6027 | (rounded) | |||
Add Answer to:
Data on Nathan Enterprises for the most recent year are shown below, along with the days...
Data on Huizenga Enterprises for the most recent year are shown below, along with the days...
Data on Huizenga Enterprises for the most recent year are shown below, along with the days sales outstanding of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its receivables enough to reduce its DSO to the benchmarks' average. If this were done, by how much would receivables decline? Use a 365-day year. Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example,...
We witness the following infomation on Lona's Lil Inc. for the most recent year are shown...
We witness the following infomation on Lona's Lil Inc. for the most recent year are shown below, along with the inventory conversion period (ICP) of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its inventory enough to reduce its ICP to the benchmarks' average. If this were done, by how much would inventories decline? Use a 365-day year. Cost of goods sold = $85,000 Inventory = $20,000 Inventory conversion period (ICP) =...
Data on Stretch It Out, Inc. for the most recent year are shown below, along with...
Data on Stretch It Out, Inc. for the most recent year are shown below, along with the payables deferral period (PDP) for the firms against which it benchmarks. The firm's new CFO believes that the company could delay payments enough to increase its PDP to the benchmarks' average. If this were done, by how much would payables increase? Use a 365-day year. Enter your answer rounded to two decimal places. For example, if your answer is 12.345 then enter as...
Kiley Corporation had the following data for the most recent year (in millions). The new CFO...
Kiley Corporation had the following data for the most recent year (in millions). The new CFO believes (1) that an improved inventory management system could lower the average inventory by $4,000, (2) that improvements in the credit department could reduce receivables by $2,000, and (3) that the purchasing department could negotiate better credit terms and thereby increase accounts payable by $2,000. Furthermore, she thinks that these changes would not affect either sales or the costs of goods sold. If these...
8 Other things held constant, ifa fir tretches" e, delays paying) its accounts payable, this will lengthen its cash...
8 Other things held constant, ifa fir tretches" e, delays paying) its accounts payable, this will lengthen its cash comvesion cycle (CCC) a True h. Fale 9. Which of the following actions should Reece Windows take if it wants to tedluce its cash conversion cycle a. Start paying its bills sooner, which would reduce the average accounts payable but not affect sales b Take steps to reduce the DSO e. Sell common stock to retire longterm bonds d. Sell an...
9. Days sales outstanding Thatherton Fuels's CFO has decided to take a closer look at the...
9. Days sales outstanding Thatherton Fuels's CFO has decided to take a closer look at the company's credit policy. Thatherton Fuels has annual sales of $396.3 million, and it currently has an accounts receivable balance of $45.4 million. The first step in analyzing the firm's credit policy is to determine its days sales outstanding (DSO). Based on this information, what is Thatherton Fuels's DSO? (Use 365 days as the length of a year in all calculations.) 37.6 days 33.4 days...
Drop-down options: (collection policy, terms of credit, credit standards), (29.8 days, 32.0 days, 42.6 days, 36.2...
Drop-down options: (collection policy, terms of credit, credit
standards), (29.8 days, 32.0 days, 42.6 days, 36.2 days),
($58,370,082, $55,590,554, $47,251,971, $61,149,609)
8. Accounts receivable Effective credit management involves establishing credit standards for extending credit to customers, determining the company's terms of credit, and setting up procedures for invoicing and collecting past-due accounts. The following statement refers to a credit management policy. Select the best term to complete the sentence. The minimum financial strength a customer must have to be granted...
Krackle Korn Inc. had credit sales of $3,500,000 last year and its days sales outstanding was...
Krackle Korn Inc. had credit sales of $3,500,000 last year and its days sales outstanding was DSO = 35 days. What was its average receivables balance, based on a 365-day year?
39. Dyl Pickle Inc. had credit sales of $3,500,000 last year and its days sales outstanding...
39. Dyl Pickle Inc. had credit sales of $3,500,000 last year and its days sales outstanding was DSO = 45 days. What was its average receivables balance, based on a 365-day year?
3. Accounts receivable Effective credit management involves establishing credit standards for extending credit to customers, determining...
3. Accounts receivable Effective credit management involves establishing credit standards for extending credit to customers, determining the company's credit terms, and setting up procedures for invoicing and collecting past-due accounts. The following statement refers to a credit management policy. Select the best term to complete the sentence. The conditions of the credit sale, including cash discounts and due dates, are indicated by the company's Consider the case of Osato Chemicals Inc.: Osato Chemicals Inc.'s CFO has decided to take a...
8 Other things held constant, ifa fir tretches" e, delays paying) its accounts payable, this will lengthen its cash comvesion cycle (CCC) a True h. Fale 9. Which of the following actions should Reece Windows take if it wants to tedluce its cash conversion cycle a. Start paying its bills sooner, which would reduce the average accounts payable but not affect sales b Take steps to reduce the DSO e. Sell common stock to retire longterm bonds d. Sell an...
9. Days sales outstanding Thatherton Fuels's CFO has decided to take a closer look at the company's credit policy. Thatherton Fuels has annual sales of $396.3 million, and it currently has an accounts receivable balance of $45.4 million. The first step in analyzing the firm's credit policy is to determine its days sales outstanding (DSO). Based on this information, what is Thatherton Fuels's DSO? (Use 365 days as the length of a year in all calculations.) 37.6 days 33.4 days...
Drop-down options: (collection policy, terms of credit, credit
standards), (29.8 days, 32.0 days, 42.6 days, 36.2 days),
($58,370,082, $55,590,554, $47,251,971, $61,149,609)
8. Accounts receivable Effective credit management involves establishing credit standards for extending credit to customers, determining the company's terms of credit, and setting up procedures for invoicing and collecting past-due accounts. The following statement refers to a credit management policy. Select the best term to complete the sentence. The minimum financial strength a customer must have to be granted...
39. Dyl Pickle Inc. had credit sales of $3,500,000 last year and its days sales outstanding was DSO = 45 days. What was its average receivables balance, based on a 365-day year?
3. Accounts receivable Effective credit management involves establishing credit standards for extending credit to customers, determining the company's credit terms, and setting up procedures for invoicing and collecting past-due accounts. The following statement refers to a credit management policy. Select the best term to complete the sentence. The conditions of the credit sale, including cash discounts and due dates, are indicated by the company's Consider the case of Osato Chemicals Inc.: Osato Chemicals Inc.'s CFO has decided to take a...
Most questions answered within 3 hours.
-
find the critical value associated with a right sided hypothesis of
the mean using a sample...
asked 1 hour ago -
Which of the following statements is true with respect to a
simple linear regression model?
a....
asked 2 hours ago -
The energy required to remove an electron from a surface of a
solid element is called...
asked 3 hours ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 4 hours ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 5 hours ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 6 hours ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 6 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 8 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 8 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 9 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 10 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 10 hours ago