Questions from Financial Management

Q: Logan Distributing Company of Atlanta sells fans and heaters to retail outlets

Logan Distributing Company of Atlanta sells fans and heaters to retail outlets through out the Southeast. Joe Logan, the president of the company, is thinking about changing the firm's credit policy t...

Q: Beth’s Society Clothiers, Inc., has collection centers across the country

Beth’s Society Clothiers, Inc., has collection centers across the country to speed up collections. The company also makes payments from remote disbursement centers so the firm’s checks will take longe...

Q: Neon Light Company of Kansas City ships lamps and lighting appliances throughout

Neon Light Company of Kansas City ships lamps and lighting appliances throughout the country. Ms. Neon has determined that through the establishment of local collection centers around the country, she...

Q: On December 31 of last year, Wolfson Corporation had in inventory

On December 31 of last year, Wolfson Corporation had in inventory 400 units of its product, which cost $21 per unit to produce. During January, the company produced 800 units at a cost of $24 per unit...

Q: Postal Express has outlets throughout the world. It also keeps funds

Postal Express has outlets throughout the world. It also keeps funds for transactions purposes in many foreign countries. Assume in 2010 it held 200,000 reals in Brazil worth 130,000 dollars. It drew...

Q: Sanders’ Prime Time Company has annual credit sales of $1,

Sanders’ Prime Time Company has annual credit sales of $1,800,000 and accounts receivable of $210,000. Compute the value of the average collection period.

Q: Oral Roberts Dental Supplies has annual sales of $5,625

Oral Roberts Dental Supplies has annual sales of $5,625,000. Eighty percent are on credit. The firm has $475,000 in accounts receivable. Compute the value of the average collection period.

Q: Eco-Friendly Products has annual credit sales of $900,

Eco-Friendly Products has annual credit sales of $900,000 and an average collection period of 30 days. Assume a 360-day year. What is the company’s average accounts receivable balance? Accounts receiv...

Q: Barney’s Antique Shop has annual credit sales of $1,080

Barney’s Antique Shop has annual credit sales of $1,080,000 and an average collection period of 40 days. Assume a 360-day year. What is the company’s average accounts receivable balance? Accounts rece...

Q: In Problem 8, if accounts receivable change to $140,

In Problem 8, if accounts receivable change to $140,000, while credit sales are $1,440,000, should we assume the firm has a more or a less lenient credit policy? Hint: Recompute the average collection...