Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

McDowell Industries sells on terms of 3/10, net 30. Total sales for year are= $912,500; 40 % of customers give on 10th day and get reduction, whereas other 60% pay on average 40 days after their purchases.

i) Find the days' sales outstanding?

ii) Determine the average amount of receivables?

iii) Compute the percentage cost of trade credit to customers who take discount and to those who don’t get it?

iv) Describe what would occur to its accounts receivable if McDowell toughened up on its collection policy with result that all non discount customers paid on 30th day?

2) Let the historical data for the investment in the table given below.

i) Compute the total return (in dollar) for each year.

ii) Point out the level of return you would be expecting in 2015 and in 2016

iii) Describe your forecast.

Year     income  beginning   ending
2010     1.00     30.00         32.50
2011     1.20     32.50         35.00
2012     1.30     35.00         33.00
2013     1.60     33.00         40.00
2014      1.75    40.00         45.00

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914072

Have any Question? 


Related Questions in Basic Finance

1 in what sense could one argue that if managers make

1. In what sense could one argue that if managers make decisions using breakeven analysis, they are not maximizing shareholder wealth? How can breakeven analysis be modified to solve this problem? 2. Explain the differen ...

1 financial ratios are used extensively in annual reports

1. Financial ratios are used extensively in annual reports to interpret and explain financial statements. Comment. 2. List the sections of annual reports where ratios are most frequently located, in order of use. 3. Acco ...

Divide speaking responsibilities for a team presentationin

Divide speaking responsibilities for a team presentation In teams of three or four, plan how to divide parts of a presentation. Your topic is international copyright laws, and your audience consists of an international g ...

Nicollette nbspjoined towson university basketball team

Nicollette  joined Towson University basketball team since summer 2015. On average, she is able to score 30% of the field goals. Assume she tries 15 field goals in a game. (a) Let X be the number of field goals that Mimi ...

In 2009 daryl bought a life insurance policy on his life

In 2009, Daryl bought a life insurance policy on his life with a death benefit of $200,000. He named his wife Melanie the beneficiary of this policy. In 2012, Daryl created an ILIT with Melanie as beneficiary, and transf ...

1 what is the law of one price how is it related to the

1. What is the law of one price? How is it related to the theory of purchasing power parity (PPP)? 2. Is PPP a theory of exchange rate determination in the long run or in the short run? 3. According to the theory of purc ...

A large corporation is interested in determining whether an

A large corporation is interested in determining whether an association exists between the commuting time of its employees and the level of stress-related problems observed on the job. A study of 116 assembly-line worker ...

If you were using a full length centerline gage rod to

If you were using a full length, centerline, gage rod to measure DL, how much change would you expect to see at 2508F? 8. What DL from ‘‘before tightening'' would you expect to see at 2508F if you were using ultrasonics ...

Bellamee company has bonds outstanding with five years to

Bellamee Company has bonds outstanding with five years to maturity and a face value of $5,299. The bonds are currently priced at their face value. If the bonds have a coupon rate of 25 percent, then what is Bellamee's af ...

An investor has projected three possible scenarios for a

An investor has projected three possible scenarios for a project as follows: Pessimistic-NOI will be $200,000 the first year, and then decrease 2 percent per year over a five-year holding period. The property will sell f ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro