Questions from Financial Management

Q: Dome Metals had credit sales of $180,000 yearly with

Dome Metals had credit sales of $180,000 yearly with credit terms of net 60 days, which is also the average collection period. If Dome offered a 3 percent discount for payment in 18 days and every cus...

Q: Dome Metals has credit sales of $180,000 yearly with

Dome Metals has credit sales of $180,000 yearly with credit terms of net 60 days, which is also the average collection period. Dome offered a 3 percent discount for payment in 18 days, and Dome reduce...

Q: Orbital Communications has operating plants in over 100 countries. It also

Orbital Communications has operating plants in over 100 countries. It also keeps funds for transactions purposes in many foreign countries. Assume in 2010 it held 150,000 kronas in Norway worth $40,00...

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 240,000 reals in Brazil worth 170,000 dollars. It drew...

Q: Thompson Wood Products has credit sales of $2,160,

Thompson Wood Products has credit sales of $2,160,000 and accounts receivable of $288,000. Compute the value of the average collection period.

Q: Oral Roberts Dental Supplies has annual sales of $5,200

Oral Roberts Dental Supplies has annual sales of $5,200,000. Ninety percent are on credit. The firm has $559,000 in accounts receivable. Compute the value of the average collection period.

Q: Knight Roundtable Co. has annual credit sales of $1,

Knight Roundtable Co. has annual credit sales of $1,080,000 and an average collection period of 32 days in 2008. Assume a 360-day year. What is the company’s average accounts receivable balance? Accou...

Q: Fondren Exploration Ltd. has 1,000 convertible bonds ($1

Fondren Exploration Ltd. has 1,000 convertible bonds ($1,000 par value) outstanding, each of which may be converted to 50 shares of stock. The $1 million worth of bonds has 25 years to maturity. The c...

Q: Darla’s Cosmetics has annual credit sales of $1,440,

Darla’s Cosmetics has annual credit sales of $1,440,000 and an average collection period of 45 days in 2008. Assume a 360-day year. What is the company’s average accounts receivable balance? Accounts...

Q: Barney’s Antique Shop has annual credit sales of $1,620

Barney’s Antique Shop has annual credit sales of $1,620,000 and an accounts receivable balance of $157,500. Calculate the average collection period (use 360 days in a year).