Problem 16-05 Accounts Payable A chain of appliance stores, APP Corporation, purchases inventory with a net...
Problem 16-05
Accounts Payable
A chain of appliance stores, APP Corporation, purchases inventory with a net price of $550,000 each day. The company purchases the inventory under the credit terms of 2/15, net 35. APP always takes the discount, but takes the full 15 days to pay its bills. What is the average accounts payable for APP? Round your answer to the nearest dollar.
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Problem 16-05
Accounts Payable
A chain of appliance stores, APP Corporation, purchases
inventory with a net...
8-5 Accounts Payable A chain of appliance stores, APP Corporation, purchases inventory with a net price...
8-5 Accounts Payable A chain of appliance stores, APP Corporation, purchases inventory with a net price of $300,000 each day. The company purchases the inventory under the credit terms of 1/15, net 35. APP always takes the discount, but takes the full 15 days to pay its bills. What is the average accounts payable for APP? Round your answer to the nearest dollar. $
A chain of appliance stores APP corporation purchases inventory with a net price of 550,000 each...
A chain of appliance stores APP corporation purchases inventory with a net price of 550,000 each day the company purchases the inventory under the credit terms of 2\15, net 40. APP always takes the discount but takes the full 15 days to pay its bills what is the average accounts payable for APP round your answer to the nearest dollar
A chain of appliance stores, APP Corporation, purchases inventory with a net price of $550,000 each...
A chain of appliance stores, APP Corporation, purchases inventory with a net price of $550,000 each day. The company purchases the inventory under the credit terms of 2/15, net 35. APP always takes the discount, but takes the full 15 days to pay its bills. What is the average accounts payable for APP? Round your answer to the nearest dollar. I just want to know if I am correct: The answer I got was: 2,250,000.00 Am I correct? Was I...
21-9: Accruals and Accounts Payable (Trade Credit) Problem 21-16 Trade Credit The Thompson Corporation projects an...
21-9: Accruals and Accounts Payable (Trade Credit) Problem 21-16 Trade Credit The Thompson Corporation projects an increase in sales from $1 million to $3 million, but it needs an additional $300,000 of current assets to support this expansion. Thompson can finance the expansion by no longer taking discounts, thus increasing accounts payable. Thompson purchases under terms of 3/10, net 30, but it can delay payment for an additional 35 days - paying in 65 days and thus becoming 35 days...
1.2. Receivables Investment Snider Industries sells on terms of 2/10, net 35. Total sales for the...
1.2.
Receivables Investment Snider Industries sells on terms of 2/10, net 35. Total sales for the year are $500,000. Thirty percent of customers pay on the 10th day and take discounts; the other 70% pay, on average, 40 days after their purchases. Assume a 365-day year. a. What is the days sales outstanding? Do not round intermediate calculations. Round your answer to the nearest whole number. days b. What is the average amount of receivables? Do not round intermediate calculations....
Accounts payable, end of year Accounts receivable, net, end of year Inventory, end of year Net...
Accounts payable, end of year Accounts receivable, net, end of year Inventory, end of year Net sales Cost of goods sold Current Year $ 6,163 22,645 8,464 194,000 103,000 Prior Year $ 10,108 16,794 7,735 153,000 123,000 (1) Use the information above to compute the number of days in the cash conversion cycle for each year. (2) Did the company manage cash more effectively in the current year? X Answer is complete but not entirely correct. Complete this question by...
Please answer those question answer. THANKS Ingraham Inc. currently has $945,000 in accounts receivable, and its...
Please answer those question answer.
THANKS
Ingraham Inc. currently has $945,000 in accounts receivable, and its days sales outstanding (DSO) is 61 days. It wants to reduce its DSO to 35 days by pressuring more of its customers to pay their bills on time. If this policy is adopted, the company's average sales will fall by 15%. What will be the level of accounts receivable following the change? Assume a 365-day year. Do not round intermediate calculations. Round your answer...
Exercise 6-46 (Algorithmic) Recording Purchases Reeves Corporation uses the perpetual system to record inventory transactions. In...
Exercise 6-46 (Algorithmic) Recording Purchases Reeves Corporation uses the perpetual system to record inventory transactions. In a recent month, Reeves engaged in the following transactions: a. On April 1, Reeves purchased merchandise on credit for $21,900 with terms 2/10, n/30. b. On April 2, Reeves purchased merchandise on credit for $25,900 with terms 3/15, n/25. c.On April 9, Reeves paid for the purchase made on April 1. d. On April 25, Reeves paid for the merchandise purchased on April 2...
Dome Metals has credit sales of $378,000 yearly with credit terms of net 60 days, which...
Dome Metals has credit sales of $378,000 yearly with credit terms of net 60 days, which is also the average collection period. Dome does not offer a discount for early payment, so its customers take the full 60 days to pay . a. What is the average receivables balance? (Use a 360-day year.) AVERAGE RECIEBLES BALANCE b. What is the receivables turnover? ? (Use a 360-day year.) RECIEVABLES TURNOVER Dome Metals has credit sales of $126,000 yearly. If Dome offers...
A supplier to your firm offers credit terms of 2/15 net 45 however, your firm never takes advanta...
A supplier to your firm offers credit terms of 2/15 net 45 however, your firm never takes advantage of the discount but instead always pays full price on day 45. Your finance intern claims that your firm would be better off borrowing money from an existing but little used line of credit at a current annualized rate of 8%, pay the firm providing credit at the end of the discount period (day 15) and to then repay the line of...
21-9: Accruals and Accounts Payable (Trade Credit) Problem 21-16 Trade Credit The Thompson Corporation projects an increase in sales from $1 million to $3 million, but it needs an additional $300,000 of current assets to support this expansion. Thompson can finance the expansion by no longer taking discounts, thus increasing accounts payable. Thompson purchases under terms of 3/10, net 30, but it can delay payment for an additional 35 days - paying in 65 days and thus becoming 35 days...
1.2.
Receivables Investment Snider Industries sells on terms of 2/10, net 35. Total sales for the year are $500,000. Thirty percent of customers pay on the 10th day and take discounts; the other 70% pay, on average, 40 days after their purchases. Assume a 365-day year. a. What is the days sales outstanding? Do not round intermediate calculations. Round your answer to the nearest whole number. days b. What is the average amount of receivables? Do not round intermediate calculations....
Accounts payable, end of year Accounts receivable, net, end of year Inventory, end of year Net sales Cost of goods sold Current Year $ 6,163 22,645 8,464 194,000 103,000 Prior Year $ 10,108 16,794 7,735 153,000 123,000 (1) Use the information above to compute the number of days in the cash conversion cycle for each year. (2) Did the company manage cash more effectively in the current year? X Answer is complete but not entirely correct. Complete this question by...
Please answer those question answer.
THANKS
Ingraham Inc. currently has $945,000 in accounts receivable, and its days sales outstanding (DSO) is 61 days. It wants to reduce its DSO to 35 days by pressuring more of its customers to pay their bills on time. If this policy is adopted, the company's average sales will fall by 15%. What will be the level of accounts receivable following the change? Assume a 365-day year. Do not round intermediate calculations. Round your answer...
Exercise 6-46 (Algorithmic) Recording Purchases Reeves Corporation uses the perpetual system to record inventory transactions. In a recent month, Reeves engaged in the following transactions: a. On April 1, Reeves purchased merchandise on credit for $21,900 with terms 2/10, n/30. b. On April 2, Reeves purchased merchandise on credit for $25,900 with terms 3/15, n/25. c.On April 9, Reeves paid for the purchase made on April 1. d. On April 25, Reeves paid for the merchandise purchased on April 2...
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