Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Accounts receivable are P30,000 and the turnover rate is 24 times a year. As turnover rate of 18 times in one year is desired to

Accounts receivable are P30,000 and the turnover rate is 24 times a year. As turnover rate of 18 times in one year is desired to increase sales by 20%. How much must be the estimated

accounts receivable to be maintained?

 
9. Merchandise Inventory of P60,000 turns over every 20 days on the average. How much must be the increase (decrease) therein if it is desired that turnover rate be 15 times in one year?


10. Bam sells on terms of net 20 days, but its accounts receivable average 10 days overdue. Assuming a 360-day year and annual credit sales of P 2.4 million, the book value of Jam's receivables is?

Step by Step Solution

3.47 Rating (157 Votes )

There are 3 Steps involved in it

Step: 1

9 To calculate the estimated accounts receivable to be maintained we can use the turnover rate and the desired increase in sales Given Current account... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these Accounting questions

Question

What does the term business mean to you?

Answered: 1 week ago