Chapter_28

# Chapter_28 - Chapter 28 Problems 1-25 Input boxes in tan...

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Unformatted text preview: Chapter 28 Problems 1-25 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the &quot;Analysis ToolPak&quot; or &quot;Solver Add-in&quot; be installed in Excel. To install these, click on &quot;Tools|Add-Ins&quot; and select &quot;Analysis ToolPak&quot; and &quot;Solver Add-In.&quot; Chapter 28 Question 1 Input Area: Units 200 Unit price \$95 Terms 2% / 10 Net 30 Output Area: a. Days until account is overdue 30 Remittance \$19,000 b. Discount 2% Discount period 10 Remittance \$18,620 c. Implicit interest \$380 Days of credit 20 Chapter 28 Question 2 Input Area: Annual sales \$65,000,000 Collection period 48 # days per year 365 Output Area: Receivable turnover 7.604 Average receivables \$8,547,945 Chapter 28 Question 3 Input Area: Terms 2 / 10 Net 30 Percentage taking discount 65% Sales price \$2,200 Units sold per period 1,200 Periods per year 12 Output Area: a. ACP 17.00 b. Total annual sales \$31,680,000 Receivables turnover 21.4706 Average receivables balance \$1,475,506.85 Chapter 28 Question 4 Input Area: Credit sales \$18,000 Collection period 29 Cost of production (% of sales) 80% Output Area: Daily sales \$2,571.43 Average A/R \$74,571.43 Chapter 28 Question 5 Input Area: Terms 2% / 9 Net 40 a. New discount 3% b. New credit period 60 c. New discount period 15 Output Area: EAR (original terms) 26.85% a. EAR 43.14% b. EAR 15.56% c. EAR 34.31% Chapter 28 Question 6 Input Area: Daily investment in receivables \$46,000 Collection period 52 # days per year 365 Output Area: Receivables turnover 7.0192 Annual credit sales \$322,884.62 Chapter 28 Question 7 Input Area: Terms 2% / 15 Net 40 Discount used % 60% New terms 4% / 10 New net 30 Units sold 4,000 Unit price \$400 Output Area: Total credit sales \$1,600,000 ACP 25.00 Receivables turnover 14.600 Average receivables \$109,589.04 If the firm increases the cash discount, then more people will pay sooner, thus lowering the average collection period. If the ACP declines, receivables turnover increases, which will lead to a decrease in average receivables. Chapter 28 Question 8 Input Area: Average days past due...
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## Chapter_28 - Chapter 28 Problems 1-25 Input boxes in tan...

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