Finance 350 Homework Chapters 19 and 20 Do all calculations using 9 decimal places, retain the 9 decimal places throughout the calculations, then when you report answers round to 2 decimal places. Examples: If the answer is in years: i.e., 9.5576 report 9.56 years. If the answer is in dollars, i.e., $56.987.555 report to the nearest cent $56,987.56. If the answer is in percentage terms i.e., 10.4478% report 10.45% If the answer is in times i.e., 4.783 report 4.78 times. You need to be very precise with rounding and reporting. For instance, if the answer is 9 times you must report 9.00, the homework grading program will count 9 as incorrect, it would count 9.0 as incorrect, everything must be carried or rounded to two decimal places. Another example if the answer is $48,000, you must report 48,000.00 6. Size of Accounts Receivable The Ruben Corporation has annual sales of $ 36,000,000. The average collection period is 35 days. What is Ruben's average investment in accounts receivable as shown on the balance sheet? $ Points: 10 7. ACP and Accounts Receivable Galapagos Garcia, Inc., sells earnings forecasts for Island securities. Its credit terms are 3/10, net 60. Based on experience, 60% of all customers will take the discount a. What is the average collection period for Galapagos Garcia? days Points 5 b. If Galapagos Garcia sells 210 forecasts every month at a price of $ 12,000 each, what is its average balance sheet amount in accounts receivable? (Hint: calculate annual sales then divide by 365 to get daily sales.) Points: 5 8. M.C. Planner has weekly credit sales of 155,000 and the average collection period is 40 days. The cost of production is 60% of the selling price. What is Planner's average accounts receivable figure? (Hint: calculate annual sales then divide by 365 to get daily sales. Do not round to two decimal places until final answer.) Points: 10