Ch_20_HW_A_Solutions (1)

Ch_20_HW_A_Solutions (1) - Ch 20 HW A Solutions 1 60 2...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Ch 20 HW A Solutions 1 Ch 20 HW A Solutions 1. 60 2. 2,000 * 50.00 = 100,000.00 3. 5.00% 4. 20 5. 100,000.00 (1 – 0.05 ) = 100,000.00 ( 0.95 ) = 95,000.00 6. 100,000.00 95,000.00 = 5,000.00 7. 60 20 = 40 8. Accounts receivable = Annual Sales * Average Collection Period = 30,000,000 * 55 = 1,650,000,000 Average Accounts receivable = 1,650,000,000 / 365 = 4,520,547.95 or Average Daily Sales * Average Collection Period = ( 30,000,000 / 365) * 55 = 4,520,547.95 Avg Accounts Receivable Annual Sales 30,000,000 ACP 55 Avg AR 4,520,548 9. 60% of customers will take discount, so they will pay in 15 days whereas 40% customers will not take discount and they will pay in 60 days Average Collection Period = ( 0.60 * 15 ) + ( 0.40 * 60 ) = 9.00 + 24.00 = 33.00 days Weighted Avg ACP % of customers taking discount 60.00% Discount period 15 Full Period 60 ACP 33
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Ch 20 HW A Solutions 2 10. Average Collection Period = Accounts receivable / Average daily credit sales Annual Sales = 210 * 10,000 * 12 = 25,200,000
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/29/2011 for the course FINANCE 332 taught by Professor Linney during the Fall '11 term at Guilford Tech.

Page1 / 5

Ch_20_HW_A_Solutions (1) - Ch 20 HW A Solutions 1 60 2...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online