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7-3 Corner Creations by Dana, Inc. has sales of $12.5 million a year and credit sales account for 80 percent of thi...
(Efficiency analysis) ALei Industries has credit sales of $160 million a year.
(Efficiency analysis) ALei Industries has credit sales of $160 million a year. ALei's management reviewed its credit policy and decided that it wants to maintain an average collection period of 45 days. a. What is the maximum level of accounts receivable that ALei can carry and have a 45-day average collection period? b. If Alei's current accounts receivable collection period is 60 days, how much would it have to reduce its level of accounts receivable in order to achieve its goal of...
Kari-Kidd Corporation currently gives credit terms of "net 45 days." It has $45 million in credit...
Kari-Kidd Corporation currently gives credit terms of "net 45 days." It has $45 million in credit sales, and its average collection period is 50 days. To stimulate demand, the company may give credit terms of "net 70 days." If it does instigate these terms, sales are expected to increase by 25 percent. After the change, the average collection period is expected to be 80 days, with no difference in payment habits between old and new customers. Variable costs are $8...
Sabby Inc. has net credit sales of $2.4 million. Its opening accounts receivable is $545,000 and...
Sabby Inc. has net credit sales of $2.4 million. Its opening accounts receivable is $545,000 and its ending accounts receivable is $525,000. What is the average collection period? 1.O 81 days 02. O 82 days 03. O 83 days 04.80 days
vable changes without bad debts Tara's Textiles currently has credit sales of $361 million per year...
vable changes without bad debts Tara's Textiles currently has credit sales of $361 million per year and an average collection period of 60 days. Assume that the price of Tara's products is $59 per unit and that the variable costs are $54 per unit. The firm is considering an accounts receivable change that will result in a 20.6 % increase in sales and a 19.6 % increase in the average collection period. No change in bad debts is expected. The...
(Efficiency analysis) The Brenmar Sales Company had a gross profit margin (gross profits ÷ sales) of 26 percent and sales of $8.3 million last year.
(Efficiency analysis) The Brenmar Sales Company had a gross profit margin (gross profits ÷ sales) of 26 percent and sales of $8.3 million last year. 70 percent of the firm's sales are on credit, and the remainder are cash sales. Brenmar's current assets equal $1.4 million, its current liabilities equal $295,500, and it has $109,900 in cash plus marketable securities. a. If Brenmar's accounts receivable equal $561,700, what is its average collection period? b. If Brenmar reduces its average collection period to...
The Boyd Corporation has annual credit sales of $2.48 million. Current expenses for the collection department are $35,00...
The Boyd Corporation has annual credit sales of $2.48 million. Current expenses for the collection department are $35,000, bad-debt losses are 1.7%, and the days sales outstanding is 30 days. The firm is considering easing its collection efforts such that collection expenses will be reduced to $27,000 per year. The change is expected to increase bad-debt losses to 2.7% and to increase the days sales outstanding to 45 days. In addition, sales are expected to increase to $2,505,000 per year....
The Boyd Corporation has annual credit sales of $1.93 million. Current expenses for the collection department...
The Boyd Corporation has annual credit sales of $1.93 million. Current expenses for the collection department are $41,000, bad-debt losses are 1.7%, and the days sales outstanding is 30 days. The firm is considering easing its collection efforts such that collection expenses will be reduced to $24,000 per year. The change is expected to increase bad-debt losses to 2.7% and to increase the days sales outstanding to 45 days. In addition, sales are expected to increase to $1,955,000 per year....
Jordan Air Inc. has average inventory of $1,000,000. Its estimated annual sales are 15 million and...
Jordan Air Inc. has average inventory of $1,000,000. Its estimated annual sales are 15 million and the firm estimates its receivables collection period to be twice as long as its inventory conversion period. The firm pays its trade credit on time; its terms are net 30. The firm wants to decrease its cash conversion cycle by 10 days. It believes that it can reduce its average inventory to $900,000. Assume a 360-day year and that sales will not change. Cost...
Accounts receivable changes without bad debts Tara's Textiles Currently has credit sales of $359 million per...
Accounts receivable changes without bad debts Tara's Textiles Currently has credit sales of $359 million per year and an average collection period of 64 days Assume that the price of Tara's products is $60 per unit and that the variable costs are $54 per unit. The firm is considering an accounts receivable change that will result in a 202% increase in sales and a 19 6% increase in the average collection period. No change in bad debts is expected. The...
A firm has projected next year's sales at $678 million of which 60 percent will be...
A firm has projected next year's sales at $678 million of which 60 percent will be for cash, and 40 percent will be on credit. Forecast the year-end accounts receivable balance if the firm expects an average collection period of 45 days (assume a 360-day year and calculate using year-end balance).
Sabby Inc. has net credit sales of $2.4 million. Its opening accounts receivable is $545,000 and its ending accounts receivable is $525,000. What is the average collection period? 1.O 81 days 02. O 82 days 03. O 83 days 04.80 days
vable changes without bad debts Tara's Textiles currently has credit sales of $361 million per year and an average collection period of 60 days. Assume that the price of Tara's products is $59 per unit and that the variable costs are $54 per unit. The firm is considering an accounts receivable change that will result in a 20.6 % increase in sales and a 19.6 % increase in the average collection period. No change in bad debts is expected. The...
Accounts receivable changes without bad debts Tara's Textiles Currently has credit sales of $359 million per year and an average collection period of 64 days Assume that the price of Tara's products is $60 per unit and that the variable costs are $54 per unit. The firm is considering an accounts receivable change that will result in a 202% increase in sales and a 19 6% increase in the average collection period. No change in bad debts is expected. The...
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