Receivables

Related BrainMass Solutions

• Multiple Choice

  If a company improves their timely collection of accounts receivables reducing the average period of time receivables are outstanding then receivables turnover has a) increased b) decreased c) remained unchanged d) can't be determined The receivables

• Recievables Turnover

  Assume the cost of carrying the receivables is 9%. Sales= $1,034,550 Receivables= $267,700 Receivables turnover ratio=Sales/ Receivables= 3.8646 =$1,034,550. / $267,700.

• Making a Credit Policy Decision with Changing Variables

  = $14,974.52 Receivables Turnover = Yearly Credit Sales/Average Receivables = 180,000/14,974.52 = 12.17 times The solution concisely explains the calculation of average receivables and receivables turnover.

• Investment in receivables

  The remaining part in receivables in the profit which is not an investment Investment in receivables = 2,465,753.42 X 0.8 = $1,972,602.74 b.

• Managing Receivables

  Average Collection Period = Average Receivables/Per Day Sales Average Receivables = (Opening Receivables + Closing Receivables)/2 For 2005, Average Receivables = (375,000+420,000)/2=397,500 For 2006 Average Receivables = (333,500+375,000)/2=354,250

• Firm's Average Collection Period & Current Receivable Balanace

  Savings from changes in policy = (new receivables - old receivables) * cost to the firm to carry receivables =(90000-80000)*8% =$800 This post shows how to calculate the firm's average collection period and the firm's current receivables balance.and

• Cash conversion cycle

  Inventory turnover = 10x Inventory conversion period = 365/10 = 36.5 days Receivables turnover = 20x Receivables collection period = 365/20 = 18.25 days Payables turnover = 25x Payables deferral period = 365/25 = 14.6 days 3.

• International Finance

  The real cost of hedging receivables = $83,000 - $80,000 = $3,000. The nominal amount of hedged receivables = $.80(100,000) = $80,000. The nominal amount of receivables if unhedged = $.75(100,000) = $75,000.

• Calculating Declining Receivables Example

  day sales = 257.53 X 20 =5,150.69 Current receivables = 16,000 Receivables would decline by 16,000-5,150.69 = $10,849.31 Solution explains how to calculate the amount in which receivables would decline.

• Accounting Management Practices

  The following practices will speed the collection of receivables Pledging Accounts Receivables Accounts receivables represent the money owed to a business from credit sales to customers.