Mary's average collection period is 42 days; her average payment period is 19 days. Explain whether or

Question:

Mary's average collection period is 42 days; her average payment period is 19 days. Explain whether or not this is a good or a bad policy.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Cambridge International AS And A Level Accounting

ISBN: 9781444181432

1st Edition

Authors: Ian Harrison

See More Books

Question Posted: Aug 24, 2023 01:57 PM

See More Questions

First Picked Fruits Inc. is considering two alternatives to stimulate sales. Currently, the policy is net 30 and the average collection period is 40 days, with bad debt losses of 1.25 percent of...
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
dentify a true statement about penetration pricing. It emphasizes a company's current performance but can sacrifice long-term performance. It requires a company to price goods to cover variable costs...
Assuming the level of investment is $16 billion and independent of the level of total output, complete the accompanying table and determine the equilibrium levels of output and employment in this...
George Seby is thinking about doing some speculating in interest rates. He thinks rates will fall and, in response, the price of Treasury bond futures should move from 9215, their present quote, to a...
You have a bar magnet and a circular conducting loop, and you wish to induce a current in the loop that changes direction regularly: clockwise, counterclockwise, clockwise, and so on. Explain how to...
Residents of Green Acres, a gated community located in the City of Foothills, voted to form a local improvement district to fund the construction of a neighborhood park. The city agreed to administer...
11. If a,b,x,ye R,@ #1, is a cube root of unity and (a+b)=x+yo, then (b+aw)' equals: (a) y+x@ 6 (c) -y-xw 12. The value of S = sin- -icos- (c) y+yw (d) -x-ya 2k is: 7 (c)-i (d) i , then value of...
Identify two limitations of using ratios as an evaluation of performance.
Bima makes a gross profit ratio of 54 per cent. Is this good or bad?
At the back of the chapter is a Future Time Orientation scale. After completing it, determine whether you have a future time perspective, present time perspective, or past time perspective. What are...
Find the answers to the questions below and what are the answers? What is the total personal property (after any 179)? What is the Total Personal Property 4th quarter (after any 179)?
Variable Costing Income Statement; Reconciliation LO6-1, LO6-2, LO6-3 During Heaton Company's first two years of operations, it reported absorption costing net operating income as follows: Year 1...
A property manager is hired to rent out a client's single-family home. There are two applicants that apply. The first individual is a single male who has had a job for one month and is receiving cash...
which theoretical concept is "the elephant in the room" (obvious, but not "there"): a) Globalization; b) Neoliberalism: c) Orientalism; d) all of the above?
Preparing closing entries and a post - closing trial balance LO P 6 Following are accounts and year - end adjusted balances of Cruz Company as of December 3 1 . 1 . Prepare the December 3 1 closing...
What is the difference between statistical significance and practical significance? Can a statistical study have statistical significance, but not practical significance?
Express mass density in kg/m3 and weight density in lb/ft3. 1. Find the mass density of a chunk of rock of mass 215 g that displaces a volume of 75.0 cm3 of water. 2. A block of wood is 55.9 in. x...
Explain why a marketing audit might be desirable, even in a well-run company. Who or what kind of an organization would be best to conduct a marketing audit? Would a marketing research firm be good?...
This problem emphasizes the differences between the full-cost approach and contribution-margin approach to marketing cost analysis. Tapco, Inc., currently sells two products. Sales commissions and...
Identify some of the ways that a firm can raise money to support a new marketing plan. Give the advantages and limitationsfrom a marketing managers perspective of each approach.
What did the NASA's Challenger Shuttle case demonstrate in terms of team decision making?
Aside from applying the law as your sworn duty as a judge, what is your personal opinion about whether or not a faith - based organization should have an exemption from having to follow any federal...
Explain how the length of the sentences, choice of words, punctuation and size of font in the written texts are effective Pedestrians account for one of the biggest death toll statistics on South...

Mary's average collection period is 42 days; her average payment period is 19 days. Explain whether or

Question:

Step by Step Answer:

Marys average collection period and average payment period are important indicators of her companys cash flow management and credit policies Lets break down what each of these terms means and then ana...View the full answer

Cambridge International AS And A Level Accounting

Students also viewed these Business questions