Answer:
The difference is 22.34 days which results in late payments
Explanation:
For computing the DSO we have to compute the accounts receivable turnover ratio which is shown below:
Accounts receivable turnover ratio = Credit sales ÷ average accounts receivable
= $325,000 ÷ $60,000
= 5.42 times
and the average collection period in days = Total number of days in a year ÷ accounts receivable turnover ratio
= 365 days ÷ 5.42 times
= 67.34 days
Actual credit period is given is 45 days
But the resulted days are 67.34 days
So, the difference is 22.34 days which results in late payments
Answer:
The correct answer is C that is the accuracy of the data.
Explanation:
Execution means that the actual implementation or the execution of the details financials. As her boss gave feedback that the presentation was excellent which states that the level of the accuracy of the data is good.
Therefore, the aspect of the effectiveness of the communication which is not referred by the boss is accuracy of the data while talking about the execution.
Answer:
a. Amount of operating expenses recognized during the accounting period = Account payable closing balance + Cash payment - Opening balance
= $25,000 + $40,000 - $2,000
= $63,000
b. Net income earned during the accounting period = Cash revenue - Amount of operating expenses recognized
= $85,000 - $63,000
= $22,000
C. Amount of cash flow from operating activities = Net income + Increase in current liability
= $22,000 + ($25,000 - $2,000)
= $45,000
Answer:
C) ABC 5% and DEF 5.7%
Explanation:
Data provided in the question:
Purchasing Cost of Stock ABC purchased = $40 per share
Purchasing Cost of Stock DEF purchased = $35 per share
Time = 6 months
Selling price of share of ABC = $42 per share
Selling price of DEF share = $36
Dividend paid to the DEF = $0.5 each quarter i.e $0.5 twice in 6 months
Thus,
Total dividend paid to DEF = $0.5 × 2
= $1
Now,
For ABC
Total return = Selling price - Purchasing Cost
= $42 - $40
= $2 per share
thus,
Holding period return = [ Total return ÷ Purchasing cost ] × 100%
= [ $2 ÷ $40 ] × 100%
= 5%
For DEF
Total return = Selling price + Dividend received - Purchasing Cost
= $36 + $1 - $35
= $2 per share
thus,
Holding period return = [ Total return ÷ Purchasing cost ] × 100%
= [ $2 ÷ $35 ] × 100%
= 5.7%
Hence,
option C) ABC 5% and DEF 5.7%.
