Faldo Corp sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were $425,000, and its year-end receivables were $60,000. If its DSO is less than the 45-day credit period, then customers are paying on time. Otherwise, they are paying late. By how much are customers paying early or late

Answers

Answer 1

Answer:

Faldo Corp

Customers are paying late by 6.5 days (51.5 - 45)

Explanation:

DSO = Accounts Receivable/Sales last year * 365 days

= $60,000/$425,000 * 365

= 51.5 days

Customers are paying late by 6.5 days (51.5 - 45)

b) Faldo Corp's Days Sales Outstanding (DSO) is an estimate of the number of days it takes Faldo to collect its outstanding accounts receivable.  This means that DSO measures how long it takes Faldo's customers to pay an invoice.  Faldo can calculate its DSO by dividing the total accounts receivables of last year by the total credit sales of last year.  This is then multiplied by 365 days.


Related Questions

Bonner company paid $855,000 for a tract of land which included a warehouse and office building. The land, warehouse and office building originally cost $280,000, $180,000, and $340,000 respectively and the current assessed values are $300,000, $200,000, and $400,000 respectively. How should Bonner calculate what value to record for Land?

a. 300,000/ 800,000 x 855,000
b. 280,000/900,000 x 855,000
c. 280,000 /800,000 x 855,000
d. 300,000/900,000 x 855,000

Answers

Answer:

Bonner Company

Bonner should calculate the value to record for Land as follows:

d. 300,000/900,000 x 855,000

Explanation:

The Land should be recorded at $285,000 based on the above mentioned formula.  The formula considers the current assessed value of the Land versus the amount paid by Bonner for the group of assets (Land, Warehouse and Office Buildings).  The computation of the value at which to record the Land and other assets must be proportional to the current assessed values.

If demand for a good falls, but the opportunity cost of making the good increases, then production of the good will:________

a. increase
b. decrease
c. stay the same '

Answers

Increase witch is a

If demand for a good falls, but the opportunity cost of making the good increases, the production of the good will increase.

What takes place to the opportunity fee as manufacturing of an excellent increase?

The regulation of increasing opportunity expenses states that as you increase manufacturing of 1 top, the opportunity cost to produce an additional suitable will grow.

What is meant with the aid of growing possibility price?

The law of growing possibility fee is an economic precept that describes how opportunity charges boom as resources are carried out.

Learn more about opportunity costs here https://brainly.com/question/8846809

#SPJ2

Even if a company has accurate sales forecast information calculated from multiple methods and based on solid data, the company should:

Answers

Answer:

prepare for multiple possible scenarios so it can react to whatever happens in the market

Explanation:

Sales forecast is a method of predicting futures sales volumes and patterns. It is used by businesses to make informed decisions on resource allocation.

Sales forecast determines short term and long term performance of the business.

However having accurate sales forecast information calculated from multiple methods and based on solid data does not give full assurance based on fluctuating market forces.

The business will need to prepare for multiple possible scenarios so it can react to whatever happens in the market.

A company should be prepared by ensuring proactiveness to other possible

conditions not contained in the forecast.

A company having accurate sales forecast information calculated from

multiple methods and based on solid data doesn't guarantee that deviations

can't occur. Sales information can only be forecasted and other activities  can alter the speculated sales information.

For example, the lockdown during the cov-id era caused most

shops to be shut down as a result of the self isolation carried out in

respective homes. This is a deviation in the norm and companies who

weren't prepared for it ran into debts and became liquidated.

Read more on https://brainly.com/question/19533684

Question 9 OTTU
Which of the following is not affected by a person's credit score?
A. Credit card rates
B. Federal income tax
C. Apartment rent
D. Ability to get a cell phone contract

Answers

The answer is C.Apartment rent

What is the term for the maximum amount of money people can borrow at one time on their credit cards?

A. Credit limits

B. Minimum monthly payments

C. Credit scores

D. Interest rates

Answers

Answer:

A. Credit limits

Explanation:

The term credit limit describes the maximum amount of debt or loan a financial institution grants to a client. Lenders set credit limits based on a customer's ability to pay. Customers with a bad credit history are given lower limits, while low-risk customers enjoy higher credit limits. Credit limit communicates to a customer the amount of money they can still access on credit.

Answer: credit limits

Explanation:

The following information about the payroll for the week ended December 30 was obtained from the records of Pharrell Co.:
Salaries:
Sales salaries $402,000
Warehouse salaries 210,000
Office salaries 165,000
$777,000
Deductions:
Income tax withheld $135,975
Social security tax withheld 46,620
Medicare tax withheld 11,655
Retirement savings 17,094
Group insurance 13,986
$225,330
Tax rates assumed:
Social security 6%
Medicare 1.5%
State unemployment (employer only) 5.4%
Federal unemployment (employer only) 0.6%
Required:
1. Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
A. December 30, to record the payroll.
B. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $40,000 is subject to unemployment compensation taxes.
2. Assuming that the payroll for the last week of the year is to be paid on January 5 of the following fiscal year, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
A. On page 11 of the journal: December 30, to record the payroll.
B. On page 12 of the journal: January 5, to record the employer's payroll taxes on the payroll to be paid on January 5. Because it is a new fiscal year, all salaries are subject to unemployment compensation taxes.

Answers

Answer:

1) December 30, 202x, wages expense

Dr Wages expense 777,000

    Cr Federal income taxes withheld payable 135,975

    Cr OASDI taxes withheld payable 46,620

    Cr Medicare taxes withheld payable 11,655

    Cr Retirement savings (401k) payable 17,094

    Cr Group insurance payable 11,655

    Cr Wages payable 551,670

December 30, 202x, payroll tax expense

Dr OASDI taxes expense 46,620

Dr Medicare taxes expense 11,655

Dr FUTA taxes expense 240

Dr SUTA taxes expense 2,160

    Cr OASDI taxes payable 46,620

    Cr Medicare taxes payable 11,655

    Cr FUTA taxes payable 240

    Cr SUTA taxes payable 2,160

2) December 30, 202x, wages expense

Dr Wages expense 777,000

    Cr Federal income taxes withheld payable 135,975

    Cr OASDI taxes withheld payable 46,620

    Cr Medicare taxes withheld payable 11,655

    Cr Retirement savings (401k) payable 17,094

    Cr Group insurance payable 11,655

    Cr Wages payable 551,670

January 5, 202y, payroll tax expense

Dr OASDI taxes expense 46,620

Dr Medicare taxes expense 11,655

Dr FUTA taxes expense 4,662

Dr SUTA taxes expense 41,958

    Cr OASDI taxes payable 46,620

    Cr Medicare taxes payable 11,655

    Cr FUTA taxes payable 4,662

    Cr SUTA taxes payable 41,958

what would be the danger of predicting the number of new subscriptions for a month in which 2,000 hours were spent on telemarketing

Answers

Answer:

The main danger that could pose to predicting the number of new subscriptions for a month in which 2,000 hours were spent on telemarketing would be not to consider the cost of said hours of telemarketing when considering the benefits obtained through the new subscriptions.

Thus, if the economic benefits resulting from the subscriptions were considered without subtracting the cost of the telemarketing hours, the accounting of the company's gross profits would be incorrectly recorded, incurring an error that would generate a higher tax burden for the company.

A closed economy has income of $1,000, government spending of $200, taxes of $150, and investment of $250. What is private saving?

a. $100
b. $200
c. $300
d. $400

Answers

Answer: c. $300

Explanation:

Private Saving is income less taxes and consumption so is calculated by the formula;

= Y - C - T

= Income - Consumption - Taxes

Find Consumption

Y - C - G = I

Income - Consumption - Government spending = Investment

1,000 - C - 200 = 250

C = 1,000 - 200 - 250

C = $550

Private Saving is therefore;

= 1,000 - 550 - 150

= $300

Lexi buys a food processor and uses it without any problems. She loans the processor to Jill, and Jill is injured when a part flies off the machine. If the former rule of privity of contract were in place, which of the following would be true?

Answers

Answer:

Jill cannot hold the manufacturer responsible for her injury.

Explanation:

The above question is incomplete as there are several answer options which are listed below;

• Jill can hold the manufacturer liable for her injury as long as Lexi was in the room when she got

• Jill can hold the manufacturer liable for her injury

• Jill cannot hold the manufacturer responsible for her injury

• Lexi can hold the manufacturer liable for Jill's injury.

The above answer - Jill cannot hold the manufacturer responsible for her injury, is true according to the rule of privity of contract. The rule states that a person who is not a party to a contract does not have right to sue or be sued and to enforce the obligations arising from the contract, unlike a person who is a party to the contract.

With regards to the above scenario, Lexi, who buys a food processor is the party to the contract here, hence can sue and be sued in case of any injury suffered by her, however, Jill whom food processor was loaned to, is the third party here, hence not covered by the rule of privity of contract.

Caribou Gold Mining Corporation is expected to pay a dividend of $4 in the upcoming year. Dividends are expected to decline at the rate of 3% per year. The risk-free rate of return is 5%, and the expected return on the market portfolio is 13%. The stock of Caribou Gold Mining Corporation has a beta of 0.5. Using the CAPM, the return you should require on the stock is _________.

Answers

Answer:

r = 0.09 or 9%

Explanation:

Using the CAPM, we can calculate the required rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * (rM  - rRF)

Where,

rRF is the risk free rate rM is the market return

r = 0.05  +  0.5 * (0.13 - 0.05)

r = 0.09 or 9%

Alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $370,000 per year for 20 years beginning today, or receiving one lump-sum amount today. Mary Alice can earn 4% investing this money. At what lump-sum payment amount would she be indifferent between the two alternatives?

Answers

Answer:

the  lumpsum payment amount that should be indifferent between the two alternatives is $5,028,411

Explanation:

The computation of the lumpsum payment amount that should be indifferent between the two alternatives is shown below:

Lumpsum amount is

= $370,000 ×  PVIFA at (4%,20)

= $370,000 × 13.5903

=$5,028,411

Hence, the  lumpsum payment amount that should be indifferent between the two alternatives is $5,028,411

The same is to be considered

An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The riskfree rate is 6%, the expected return on the first factor r1 is 12%, and the expected return on the second factor r2 is 8%. If bi1 0 7 and bi2 0 9, what is Crisp’s required return? Brigham, Eugene F.; Ehrhardt, Michael C.. Financial Management: Theory & Practice (p. 1011). Cengage Learning. Kindle Edition.

Answers

Answer: 12%

Explanation:

Using CAPM, the required return can be found.

required return = risk free rate + beta * market premium

Find the market premium for each factor;

First factor = Expected return - risk free rate

= 12% - 6%

= 6%

Second factor = 8% - 6%

= 2%

In this case each factor has its own beta and market premium so this will have to be accounted for in the CAPM formula as such;

= risk free rate + (beta for r1 * market premium r1) + (beta r2 * market premium r2)

= 6% + (0.7 * 6%) + (0.9 * 2%)

= 12%

The top salary you can make.
A) Career
B) Productivity
C) Earning potential
D) Human capital

Answers

Answer:

earning potential

Explanation:

Earning potential refers to the potential gains from dividend payments and capital appreciation shareholders might earn from holding a stock. In other words, it reflects the largest possible profit that a corporation can make

Suppose you buy a bond for $1230 with an 11.3% coupon maturing in 7 years.

Required:
a. Calculate the maturity.
b. What is the yield to maturity if the bond pays quarterly.
c. Explain why the yield to maturity is higher or lower than the coupon.

Answers

Answer:

a. 7.03%

b. 7.10%

c. Yield to maturity is lower than the coupon because the price is more than the face value.

Explanation:

a. Coupon amount = 11.3% * 1000 = 113

FV = 1000

PV = -1230,

PMT =  113

N = 7

Yield to maturity = I/Y(FV, -PV, PMT, N) using a financial calculator

Yield to maturity = I/Y(1000, -1230, 113, 7)

Yield to maturity = 0.070280

Yield to maturity = 7.03%

b. Coupon amount = 11.3% * 1000 = 113 /4 =  28.25

FV = 1000

PV = -1230,

PMT = 28.25

N = 7*4 = 28

Yield to maturity = I/Y(FV, -PV, PMT, N) using a financial calculator

Yield to maturity = I/Y(1000, -1230, 28.35, 28)*4

Yield to maturity = 0.01775426*4

Yield to maturity = 0.07101704

Yield to maturity = 7.10%

c. Yield to maturity is lower than the coupon because the price is more than the face value. The bond will sell at premium when YTM is greater than coupon rate. This happens because the bond is paying a return more than the market is offering.

On April 15 of the current year, a fire destroyed the entire uninsured inventory of a retail store. The following data are available:

Sales, January 1 through April 15 $600,000
Inventory, January 1 100,000
Purchases, January 1 through April 15 500,000
Markup on cost 25%

The amount of the inventory loss is estimated to be:

a. $120,000.
b. $60,000.
c. $150,000.
d. $100,000.

Answers

Answer: a. $120,000.

Explanation:

The inventory lost can be calculated by;

= Opening inventory + Purchases - Cost of Goods sold

Cost of goods sold = Sales - Markup on price

= 600,000 - (600,000 * 25/125)

= 600,000 - 120,000

= $480,000

Inventory lost = 100,000 + 500,000 - 480,000

= $120,000

what time will we know who won the election?

Answers

Answer:

So since many people voted by mail, we may not know till friday, they need to gather everyones mail and obviously since its paper its going to take a while but remember to please vite blue!

The difference between the rate charged to borrowers and the rate paid to depositors is known as the interest rate ______.

Answers

Answer:

The right approach is "spread".

Explanation:

The variation between the expected production a financial institution generates from loan payments among several other interests accumulating operations as well as the average rate everything just ends up paying on deposit accounts as well as borrowings seems to be the total rate of interest spread. An important aspect including its profitability of such a finance company seems to be the aggregate rate.

So that's the right response earlier in this thread.

This credit is a non-refundable tax credit for qualified higher education tuition and
expenses paid for an eligible student.
A) American Opportunity Tax Credit (AOTC)
B) Lifetime Learning Credit (LLC)
C) Adding Brain Credit (ABC)
D) College Discount Credit (CDC)
18
E) 4 Year College Credit (4Y2C)

Answers

Answer:

b

Explanation:

Question 1
The leather that is used for the car seats in a BMW car are considered which type of good?
А.
intermediate good
B. final good
C. interpolated good
D. foreign good

Answers

Uh Chile I think is D lmk if I’m right!!
The correct answer is:

A. Intermediate good.

Explanation:

Intermediate goods are complementary items used to finish the final product/good.

i. Examine the current process design of that product or service in alliance with the 4 vs model and illustrate the operational process by using either a Flow Chart or Value Stream Map technique.

Answers

Explanation:

junior bro

then am gointo reply it again

How many times did Donald trump declare bankruptcy

Answers

Answer:

6 times

Explanation:

According to Google

Answer:

Well Donald J. Trump has never filed for personal bankruptcy BUT, hotels and casino businesses of his have declared bankruptcy, This happened about 6 times

Explanation:

PLz mark me Brainllest :)have a nice day

11. What percentage of your salary should go to savings? (1 point)
05%
O 10%
O 20%
O 50%

Answers

Answer:

20%

Explanation:

Answer: 10%

Explanation: Took test

Xtra Company purchased a business from Argus for $96,000 above the fair value of its net assets. Argus had developed the goodwill over 12 years. How much would Xtra amortize the goodwill for its first year?

a. not enough information to calculate amortization
b. $8,000
c. goodwill is not amortized
d. $7,000

Answers

Answer:

c. goodwill is not amortized

Explanation:

The answer to this question is simply option c. Goodwill is not amortized

The reason for this is that the goodwill is accrued as a result of an entity paying more for an asset they acquired than what is supposed to be their fair value, putting its brand value into consideration. The Amortization of Goodwill is not something that is permitted . In order for a better accounting, the valuation of goodwill of entity should be done yearly so as to determine an impairment whenever it is required.

If your firm expects the euro to substantially​ depreciate, it could speculate by​ ____ euro call options or​ ____ euros forward in the forward exchange market.

a. selling; selling
b. selling; purchasing
c. purchasing; purchasing
d. purchasing; selling

Answers

Answer: selling; selling

Explanation:

If a particular firm expects the euro to depreciate, that is the value of the euro will be reduced, such firm will speculate by selling the euro call options or selling the euros forward in the forward exchange market.

This is because such firm will try as much as possible to make as much gain and when there's a speculation about decrease in value, the firm will sell the euro call options.

Which method of communication is likely to be most effective for the following situation: A client's reservation is about to be canceled because she has not paid her deposit.
A. Face-to-Face
B. Written Letter
C. Phone Call
D. Email
F. Fax

Answers

A phone is best because it would be quick
Most definitely D. Phone Call
It is more convenient and quick.

Tropical Resort, Inc.'s bonds currently sell for $1,350 and have a par value of $1,000. They pay an 11% coupon rate with interest paid semi–annually, and have a 15-year maturity, but they can be called in 7 years at $1,125. What is their yield to call (YTC)?

Answers

Answer:

Their yield to call is 8.672%

Explanation:

The rate of return bondholders receives on a callable bond until the call date is called Yield to call.

Use following formula to calculate the yield to call

Yield to Call = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

Where

C = Coupon Payment = $1,000 x 11% x 6/12 = $55

F = Face value = $1,000

P = Call price = $1,125

n -= number of periods to call = 7 years x 2 = 14 periods

Yield to Call = [ $55 + ( $1,000 - $1,125 ) / 14 ] / [ ( $1,000 + $1,125 ) / 2 ]

Yield to Call = 46.07 / $1,062

Yield to Call = 0.04336

Yield to Call = 4.336% semiannually

Yield to Call = 4.336% x 2

Yield to Call = 8.672% annually

In the Frankfurt market, Aldi stock closed at €5 per share. On the same day, the euro-U.S. dollar spot exchange rate was €.625/$1.00. Aldi trades as an ADR in the OTC market in the United States. Five underlying Aldi shares are packaged into one ADR. The no-arbitrage U.S. price of one ADR is:_______. A) €25.00. B) $15.63. C) $40.00. D) none of the options

Answers

Answer:

B) $15.63

Explanation:

Calculation for the no-arbitrage U.S. price of one ADR

First step is to calculate the Equivalent amount of one ADR in euro

Equivalent amount of one ADR in euro = 5 ×€5

Equivalent amount of one ADR in euro = €25

Now let calculate the Dollar value of one ADR

Dollar value of one ADR = €25* €625/1,000

Dollar value of one ADR=€15,625/1,000

Dollar value of one ADR=$15.63

Therefore the no-arbitrage U.S. price of one ADR is:$15.63

Short-run projected wealth levels calculated using geometric averages are probably ______________.

a. pessimistic
b. optimistic.
c. foolish.
d. erroneous.
e. confusing.

Answers

Answer:

A. pessimistic

Explanation:

A short run project usually does not take time and runs for a short period od time. The geometric average return answers the question what was your average compounded return per year over a particular period. To be pessimistic is said to be when an individual do see the worst of things or believe that the worst will always happen.

​Viva, Inc. bought machine X for two years ago. The machine had no residual value and had an estimated useful life of 10 years. If the company uses the straightline depreciation​ method, calculate the current book value of the machine.

Answers

Answer:

the current book value of the machine is $14,400

Explanation:

The computation of the current book value of the machine is shown below:

The Annual Depreciation is

= (Cost - Salvage Value) ÷ (Useful Life)

= ($18,000 - 0) ÷ 10 years  

= $1,800

Now the depreciation for two years is

= $1,800 × 2

= $3,600

So, the current book value is

= Cost - accumulated depreciation

= $18,000 - $3,600

= $14,400

Hence, the current book value of the machine is $14,400

The men's tie buyer has net sales of $1,440,000, expenses of $504,000, and total reductions of $604,800. The buyer wants a profit of $86,400. What is the initial markup?

Answers

Answer: $1,195,200

Explanation:

Net sales = $1,440,000

Expenses = $504,000

Reductions = $604,800.

We then calculate the initial mark up which will be the addition of the net sales, expenses and the reduction. This will be:

= $1,440,000 + $504,000 + $604,800

= $1,195,200

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