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 $

Solutions

Expert Solution

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

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...

How many days' sales are in Amicable's accounts receivable?

Amicable Wireless, Inc. offers credit terms of 2/10, net 30 for its customers. Sixty percent of Amicable's customers take the 2% discount and pay on day 10. The remainder of Amicable's customers pay on day 30. How many days' sales are in Amicable's accounts receivable?

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.)

Riordan Trucking has sales of $18M and an accounts receivable balance of $1M. The firm has...

Riordan Trucking has sales of $18M and an accounts receivable balance of $1M. The firm has projected next year's sales at $24M and wants to reduce ACP by 2 days. Calculate Riordan's projected accounts receivable balance. (Round to the nearest $ and assume 360 days.) a. $1.0M b. $1.2M c. $1.4M d. $1.6M

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $680,000; Allowance for Doubtful Accounts has a debit balance of $6,000; and sales for the year total $3,060,000. Bad debt expense is estimated at 1/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ Allowance for Doubtful...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $840,000; Allowance for Doubtful Accounts has a credit balance of $7,500; and sales for the year total $3,780,000. Bad debt expense is estimated at 3/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Debit (Credit) Accounts Receivable...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $895,000; Allowance for Doubtful Accounts has a credit balance of $8,000; and sales for the year total $4,030,000. Bad debt expense is estimated at 1/4 of 1% of sales. 1. Determine the amount of the adjusting entry for uncollectible accounts. $ 2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ Allowance for Doubtful...

Ingraham Inc. currently has $560,000 in accounts receivable, and its days sales outstanding (DSO) is 55...

Ingraham Inc. currently has $560,000 in accounts receivable, and its days sales outstanding (DSO) is 55 days. It wants to reduce its DSO to 25 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. Round your answer to the nearest cent.

Victoria has 3.2 mi. of accounts receivable and 5mi. of current assets. It’s DSO (days sales...

Victoria has 3.2 mi. of accounts receivable and 5mi. of current assets. It’s DSO (days sales outstanding in receivables) is 40 (based on a 365-day year), and it’s current ratio is 1.5. The firm plans to reduce its DSO to the industry average of 30 without causing a decline in sales. The resulting decrease in accounts receivable will free up cash that will be used to reduce current liabilities. If this plan succeeds, what will be the new current ratio?

Ingraham Inc. currently has $895,000 in accounts receivable, and its days sales outstanding (DSO) is 46...

Ingraham Inc. currently has $895,000 in accounts receivable, and its days sales outstanding (DSO) is 46 days. It wants to reduce its DSO to 20 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 to the nearest cent.

Subjects