Marginal investment in accounts receivable
WebBelow you will find descriptions and details for the 1 formula that is used to compute investments in accounts receivable. Investments in accounts receivable: where ACS is a company's annual credit sales and D is the average number of days taken by the … WebSelect one: a. accounts payable b. marginal investment in accounts receivable c. cost of marginal investment in accounts receivable d. profit contribution from sales e. This problem has been solved! You'll get a detailed solution from a subject matter expert that helps you …
Marginal investment in accounts receivable
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WebCost of marginal investment in accounts receivable: Marginal investment in AR $23,830,193 Required return 0.14 Cost of marginal investment in AR $ 3,336,227 d. The additional profitability of $6,000,000 exceeds the … WebMonitored all high risk/marginal accounts in 14 states low/medium risk accounts in 7 states. Employed a flexible, innovative approach to credit …
WebOct 28, 2012 · 8. 6-14 Receivable Management Cost of marginal investment in A/R: Total variable cost of annual sales Under present plan: ($6 x 60,000 units) = $360,000 Under proposed plan: ($6 x 63,000 units) = $378,000 Turnover of account receivables 365 Under present plan: = 12.2 30 365 Under proposed plan: = 8.1 45 J i m m i S ei ni t o n T e a c h i … Web(Format: 1,111,111) C. Calculate the Cost of the Marginal Investment in Accounts Receivable. (Format: 1,111,111) arrow_forward. Enticement Co currently expects sales of $50,000 a month. Variable costs of sales are $40,000 a month (all payable in the month of sale). It is estimated that if the credit period allowed to accounts receivable were to ...
WebJul 16, 2024 · The firm is considering an accounts receivable change that will result in a 20% increase in sales and a 20% increase in the average collection period. No. change in bad debts is expected. The firm’s equal-risk opportunity cost on its investment in accounts receivable is 14%. (Note: Use a 365-day year.) a. Webdecrease the firm's marginal investments in accounts receivable In an aggressive financing strategy, a firm anticipating a large increase in sales for the coming period should finance the increase in working capital with a line of credit Net working capital is defined as …
WebWhat is the cost of marginal investments in accounts receivable under the proposed plan? (See Table 15.5) A. $1,733 B. $1,867 C. $1,817 D. $1,617 Accounting Business Financial Accounting FIN 504 Answer & Explanation Solved by verified expert All tutors are evaluated by Course Hero as an expert in their subject area. Answered by tosh0883
WebNov 12, 2024 · Investing with margin accounts means using leverage, which increases the chance of magnifying an investor's profits and losses. Key Takeaways A margin account allows a trader to borrow funds... treichlaw.comWebMarginal investment in accounts receivable = $284.400 - $197.500 = $62.242 Cost of marginal investment in accounts receivable = $62.940 x 0,12 = $7.469 Cost of marginal bad debts Cost of marginal bad debts = $75.840 - $31.600 = $44.240 Total cost from implementation of proposed plan = $7.469 + $44.240 = $51.709. treichel thomas bauserviceWebJun 30, 2024 · Accounts Receivable Turnover Ratio = $100,000 - $10,000 / ($10,000 + $15,000)/2 = 7.2. In financial modeling, the accounts receivable turnover ratio is used to make balance sheet forecasts. The AR balance is based on the average number of days in which revenue will be received. Revenue in each period is multiplied by the turnover days … temperature in louisville ky in octoberWebThe firm’s equal-risk opportunity cost on its investment in accounts receivable is 14%. ( Note: Use a 365-day year.) Calculate the additional profit contribution from sales that the firm will realize if it makes the proposed change. What marginal investment in accounts receivable will result? treich church flower mound txWebb) Cost of marginal investment in AR i) Turnover of AR: Turnover of accounts receivable = 365 /Average collection period Proposed = 365/4 = 91.25 Current = 365/20 = 18.25 ii) Average investment: Average Investment in AR = variable cost of annual sales /AR turnover temperature in louisiana in marchWebthe marginal investment in accounts receivable and in bad debts. Another application of this analytical procedure is demonstrated later in the chapter. C HA PTER 18 Accounts Receivable and Inventory 787 II credit terms Specify the repayment terms required of a … temperature in lower chittering nowWebHandout - Receivables Management Discussion and Practice Questions on Receivables Management University University of the East (Philippines) Course Managerial Accounting (BSA 3102) Academic year:2024/2024 Helpful? 12 Comments Please sign inor registerto post comments. Students also viewed treichler physical therapy new cumberland