Warning: call_user_func_array() expects parameter 1 to be a valid callback, function 'wpdocs_custom_excerpt_length' not found or invalid function name in /home/myonysqo/myonlinehomeworkhelper.com/wp-includes/class-wp-hook.php on line 287

Finance Homework

josh
June 22, 2015 0 Comment

Milwaukee Surgical Supplies Inc. sells on terms on terms of 3/10, net 30. Gross sales for the year are $1,200,000, and the collections department estimates that 30 percent of the customers pay on the tenth day and take discounts, 40 percent pay on the thirteenth day, and the remaining 30 percent pay, on average, 40 days after the purchase. (Assume 360 days per year.)

  1. What is the firm’s average collection period?
  2. What is the firm’s current receivables balance?
  3. What would be the firm’s new receivables balance if Milwaukee Surgical toughened up on its collection policy, with the result that all non-discount customers paid on the 30th day?
  4. Suppose that the firm’s cost of carrying receivables was 8 percent annually.

How much would the toughened credit policy save the firm in annual receivables carrying expense?  (Assume that the entire amount of receivables had to be financed.)

Facebook
Twitter
Google+
  • 100% Original Essays Guaranteed
  • 8 Hrs Delivery Available
  • Original and creative work
  • Timely delivery guaranteed
  • 100% confidentiality guarantee
  • Variety of disciplines, topics, and deadlines
  • Discounts offered on every custom-ordered paper
  • Original papers written from scratch;
  • 100% confidential;
  • 100% plagiarism-free;
  • Fast turn-around time;
  • Direct communication with the writer;
  • Instant email delivery;
  • Free plagiarism reports;
  • 24/7 customer support team.
  • Choose your font
  • 12 point font size
  • Double-sized
  • Over 275 words/page
  • Text aligned left
  • One inch margin

We Accept

myonlinehomeworkhelper

you have a money back guarantee if you are not satisfied with our services