Finology Companys average collection period (DSO) is 37 days, which is only seven days longer than the
Question:
Finology Company’s average collection period (DSO) is 37 days, which is only seven days longer than the net 30 terms the company offers credit customers. Fifty percent of Finology’s customers pay on average on Day 20, and 30 percent pay on Day 40. On what day do the remaining credit customers pay? Assume Finology has no bad debts.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (7 reviews)
DSO 37 days 05020 days 0304...View the full answer
Answered By
Junaid ahmed
I am an English language professor with years of experience In Teaching English Language and Literature. I like to help people in the various difficult matter.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Following is the aging schedule for QRM Corporation: If its DSO is 37 days, on average, on what day does QRM collect from customers who take longer than 60 days to pay for their purchases?? Account...
-
Dan Barnes, financial manager of Ski Equipment Inc. (SKI), is excited, but apprehensive. The companys founder recently sold his 51% controlling block of stock to Kent Koren, who is a big fan of EVA...
-
a. Johnson plans to use the preceding ratios as the starting point for discussions with RR's operating team. She wants everyone to think about the pros and cons of changing each type of current asset...
-
12. Bill thinks that welfare is needed in some cases. However, his friends in the Young Republicans taunt him every time he makes his views known. As a result, he accepts their views in order to...
-
A balanced delta-connected load has line current Ia = 10 25 A. Find the phase currents IAB, IBC, and ICA.
-
The current UI program in the United States gives workers $X per day if they are unemployed but zero if they take a job for even 1 hour per day. Suppose that the law is changed so that UI...
-
You need to understand the approach described in question 3 in More Genetic TIPS before answering this question. A muscle-specific gene was cloned and then subjected to promoter bashing. As shown...
-
Rooney Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows. Indirect labor ...... $1.00...
-
2. Consider the variation of hot-potato routing/coordination routing game discussed in class, where there are three strategies: Payoff Hot Potato Long Path Planned Long-Path | Planned Hot Potato...
-
Parent Corporation owns 80% of the single class of Subsidiary Corporation stock. The remaining 20% of the Subsidiary stock is owned by Ramon. Parent and Ramon have adjusted bases of $100,000 and...
-
Great Munchies (GM) Corporation has a variable operating cost ratio of 60 percent, its cost of capital is 12 percent, and current sales are $100,000. All of its sales are on credit, and it currently...
-
Compute the DSO for Buckwell Corporation, which has the following aging schedule: Account Age Amount Outstanding Average Days 0-30 days 31-60 days Over 60 days 23 $65,000 43 25,000 10,000 63
-
Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5 percent. Selected financial information (in thousands of dollars) for the first year of business...
-
Find the following F 1;2; values. (a) v = 8, V = 10, and x = .01 (b) v = 3, V = 11, and x = .005 (c) v = 12, v2 = 9, and x = .05 (d) v = 24, v2 = 19, and x = .025 vi V2
-
Reviewing his records, a grocery store manager finds that the amount of money spent shopping on Friday evenings is normally distributed with a standard deviation of $22. A random sample of 5...
-
Suppose a random sample of 10 professional golfers is taken and the mean scoring average of the sample is found to be 71.8 strokes per round with a standard deviation of 1.3 strokes per round....
-
Suppose a random sample of 40 professional golfers is taken and the mean scoring average of the sample is found to be 72.8 strokes per round with a standard deviation of 1.2 strokes per round....
-
In a national survey, 200 cola drinkers were asked to compare Yum Yum Cola to Yuk Yuk Cola. Of the 200 people sampled, 120 preferred Yum Yum. Construct a 95 % confidence interval for the actual...
-
The blade of a windshield wiper moves through an angle of 90.0o in 0.40 s. The tip of the blade moves on the arc of a circle that has a radius of 0.45 m. What is the magnitude of the centripetal...
-
Assume that your audit team has established the following parameters for the examination of ELM's sales transactions: LO G-3 Risk of incorrect acceptance...
-
Incubus Corporation began with an investment by shareholders of $40,000. a. In its first year its income showed a deficit of $7,000. What would the equity section of its balance sheet show? b. In the...
-
What was the first area of study to generate newfound enthusiasm for decision related analysis in finance?
-
Inland Fisheries Corp. anticipates cash flows from operating activities of $6 million in 2016. It will need to spend $2 million on capital investments in order to remain competitive within the...
-
Mr. Robbins has $2,730 in his checking account and $11,019 in his savings account. How much money does Mr. Robbins have in both accounts combined?
-
You would like to attend to Coachella 2021, end of April 2021. You evaluated that you would need 3000 to fund this project. In order to be sure to be able to get tickets, you would need this amount...
-
Below are the Bavis Company's anticipated raw material purchases from March thru May. Month Raw Material Purchases March $610,000 April $200,000 May $530,000 When raw materials are purchased, about...
Study smarter with the SolutionInn App