Mervyn’s Fine Fashions has an average collection period of 40 days. The accounts receivable balance is...

Mervyn’s Fine Fashions has an average collection period of 40 days. The accounts receivable balance is $46,000.

What is the value of its annual credit sales? (Use a 360-day year.)

Solutions

Expert Solution

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

A firm has days' sales in an inventory of 105 days, an average collection period of...

A firm has days' sales in an inventory of 105 days, an average collection period of 35 days, and takes 42 days, on average, to pay its accounts payable. Taken together, what do these three figures imply about the firm's operations and its cash flows?

The average collection period ratio is defined as shown below: Accounts Receivable / (sales/ 365) It...

The average collection period ratio is defined as shown below: Accounts Receivable / (sales/ 365) It shows how many days, on average, it takes to collect your receivables. If your average collection period was 30 days last year and it is now 45 days, what does that imply? What is happening to your cash position? What are some things you might do to reduce your average collection period?

Ferry's Furniture Outlet has an accounts receivable period of 51.06 days and an accounts payable period...

Ferry's Furniture Outlet has an accounts receivable period of 51.06 days and an accounts payable period of 43.07 days. The company turns over its inventory 5.69 times per year. What is the length of the company's operating cycle? Assume 365 days per year. 94.13 days 72.14 days 21.08 days 115.21 days 107.22 days

Accounts receivable at the beginning of the year are 300. The company has a 30-days collection...

Accounts receivable at the beginning of the year are 300. The company has a 30-days collection period. Calculate cash collections in each of the four quarters by completing the following. Q1 Q2 Q30 Q4 beginning receivables 300 208 Sales 540 570 630 780 Cash collections 662 560 610 731 Ending receivables 208

Zane Corporation has an inventory conversion period of 89 days, an average collection period of 39...

Zane Corporation has an inventory conversion period of 89 days, an average collection period of 39 days, and a payables deferral period of 31 days. Assume 365 days in year for your calculations. What is the length of the cash conversion cycle? Round your answer to two decimal places. days If Zane's annual sales are $3,706,915 and all sales are on credit, what is the investment in accounts receivable? Do not round intermediate calculations. Round your answer to the nearest...

1. Custom Cars an accounts payable period of 42 days and an accounts receivable period of...

1. Custom Cars an accounts payable period of 42 days and an accounts receivable period of 36 days. The company turns over its inventory 12.8 times per year. What is the length of Custom Cars operating cycle and what is the length of Custom Car’s cash cycle? (please show how you arrive at your answer) 2. Patti’s Perfect currently has a 77 day operating cycle. The company is concentrating on increasing its inventory turnover rate from 6.5 times per year...

Company Inventory Conversion Period, days Average Collection Period, days Payables Deferral Period, days Cash Conversion Cycle,...

Company Inventory Conversion Period, days Average Collection Period, days Payables Deferral Period, days Cash Conversion Cycle, days Adidas 112 27 57 82 Puma 107 18 49 Nike 128 20 43 105 Under Armor 89 24 21 1)calculate CCC for Puma and UA. 2)pick any 1 company of the 4: how its operational liquidity stands versus competitors (other 3 firms)? how can this company improve its liquidity? What are possible risks/limitations to your proposed changes?

Poutine Cheez Company has yearly sales of $550,000 and an average collection period of 35 days....

Poutine Cheez Company has yearly sales of $550,000 and an average collection period of 35 days. A factoring company is offering a 35-day receivables loan equal to 85% of the accounts receivable at 9% along with a commission fee of .45% of the receivables. The firm estimates that by taking the offer, it could save $300 in collection costs and a full half of one percent in bad debt costs, as a percentage of sales. What is the annual cost...

CASH CONVERSION CYCLE Zane Corporation has an inventory conversion period of 52 days, an average collection...

CASH CONVERSION CYCLE Zane Corporation has an inventory conversion period of 52 days, an average collection period of 37 days, and a payables deferral period of 25 days. Assume 365 days in year for your calculations. What is the length of the cash conversion cycle? Round your answer to two decimal places. days If Zane's annual sales are $3,427,440 and all sales are on credit, what is the investment in accounts receivable? Do not round intermediate calculations. Round your answer...

Krueger Industrial Smoothing has an accounts receivable balance of $250,000 and 42 days of sales in...

Krueger Industrial Smoothing has an accounts receivable balance of $250,000 and 42 days of sales in receivables. By how much could Krueger reduce its receivable balance if it were able to reduce its days sales in receivables to the industry average of 25 days? Group of answer choices $101,190 $127,801 $148,810 $

Subjects