b) The Cheung Company has a beginning receivables balance on January 1st of $930. Sales for January through April are $970, $1,050, $1,330, and $1,460, respectively. The accounts receivable period is 36 days. How much did the firm collect in the month of March? Assume a 30-day month.

b) The Cheung Company has a beginning receivables balance on January 1st of $930. Sales for January through April are $970, $1,050, $1,330, and $1,460, respectively. The accounts receivable period is 36 days. How much did the firm collect in the month of March? Assume a 30-day month.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1P: Greene Sisters has a DSO of 20 days. The companys average daily sales are 20,000. What is the level...

See similar textbooks

Related questions

Q: Why bother with a technical evaluation, anyway? Explain its purpose, how it is used, and how it may…

A: Technical evaluation refers to the process which is used for determining whether the requirements…

Q: a) Big Pineapple, a maker of swizzle sticks, is considering the purchase of a new plastic stamping…

A: Payback Period: It refers to the period in which an investment or a project will recover the…

Q: If a taxpayer 2022 household income of $60,000 places the taxpayer at 250% of the federal poverty…

A: The Federal Poverty Level (FPL) is a gauge of the yearly income necessary that households and…

Q: A firm is expected to have free cash flow of $4 million next year, after that it will grow at 5%…

A: The firm's value is the present value of free cash flows generated by the firm discounted using WACC…

Q: A Polish currency dealer has good credit and can borrow either €1,600,000 or $2,000,000 for one…

A: Data given: Interest rate in the U.S. is i$ = 6% Euro zone the one-year interest rate is i€ = 2%…

Q: Problem 1: Interest on capital and bonus A and B formed a partnership. The partnership agreement…

A: An agreement that consists of all clauses relating to partnership is known as partnership deed. A…

Q: 14. A currency that is selling at a forward rate greater than the spot rate is said to be trading at…

A: Forward premium is an situation in which the forward future price is greater than the current spot…

Q: 7. How many months will it take to pay off a $525 loan, with monthly payments of $15 at the end of…

A: Loan: It refers to the amount borrowed and given by the lender for the borrower to purchase assets…

Q: The most recent financial statements for xyz inc. follow. Sales for 2019 are projected to grow by 22…

A: The external financing needed is an important concept as it can help in the growth of a company and…

Q: The board of directors of LuvMe Publishing Haus has commissioned a capital structure study. The…

A: 1. Earnings Per Share is calculated with the help of following formula Earnings Per Share = Earnings…

Q: Give typed solution only What is the internal rate of return of a project costing $3,000; having…

A: The process through which any investment/project's feasibility and profitability are tested is…

Q: You are considering a maintenance contract from two vendors. Vendor Y charges $80,000 upfront and…

A: We have two vendors with similar cost structure but different values. We need to find the NPV and…

Q: 8-17: Find the total deposit for problems 8-17. Currency Fives 8 9 12 32 10 1 12 67 13 133 Tens 10…

A: The total deposit refers to the amount of money that is saved with a financial institution for…

Q: Bob-Bye, Inc. has asked its financial manager to measure the cost of each specific type of capital…

A: Cost of capital refers to the cost that the company bears for raising the funds through various…

Q: Today is January 1. The forward price for contracts maturing on April 1 is $104.4 and on October 1…

A: STEP 1 An accrued bond, also known as a zero-coupon bond, is a financial stability that doesn't…

Q: Keith bought a lakeside cottage for 30% down and monthly mortgage payments of $1224.51 at the end of…

A: Introduction This article will discuss the calculation of a loan amount using time value of money…

Q: a) The current spot rate between the euro and dollar is €1.0963/$. The annual inflation rate in the…

A: Arbitrage theory is based on buying and selling the stock at the same time in different markets. It…

Q: You are considering investing RM66000 in new equipment. You estimate that the net cash flows will be…

A: Equivalent annual cost: Equivalent annual cost includes all the costs related to an asset in which…

Q: Consider the following data for a certain share. Current Price = S0…

A: The value of a call or put option using a normal distribution table can be determined by using the…

Q: An analyst has collected the following information regarding GoNa Grocers: Earnings before interest…

A: Capital budgeting is a tool to evaluate the best alternative between the projects, It helps the…

Q: Calculate Cash Budget ( Calculation of Account Receivable and Account Payable amount for the months…

A: Cash Budget is the summary of Cash Receipts and Cash Payments for the period. Non Cash iten such as…

Q: A call option with a strike price of $50 costs $2. A put option with a strike price of $45 costs $3.…

A: An option is a type of financial instrument that is based on the value of underlying securities,…

Q: eejoy is a famous football club but has significant cash flow problems. The directors and…

A: In this case ,Seejoy is the famous football club but the club is facing significant cash flow'…

Q: What are your views on dedollarization?

A: Dedollarisation is the process of substituting the US dollar currency which is used in trading oil…

Q: MULTIPLE IRRS AND MIRR A mining company is deciding whether to open a strip mine, which costs $1.5…

A: The process through which a project or investment's profitability is evaluated is considered capital…

Q: Consider an asset that costs $492,800 and is depreciated straight-line to zero over its 6-year tax…

A: We have an asset with useful life of 6 years. The asset will be put to use for two years and then…

Q: A five-year bond is issued with a face value of GHC3000.The bond pays coupon semiannually at 10%.…

A: a) Price of the bond = Coupon * [1-[1/1(1+r)^n ] /r Duration = weight * time ( weight being the…

Q: i. ii. Given an interest of 12% "payable" semi-annually, find a) an effective half-yearly interest…

A: The effective rate is the interest rate that an investment provides after taking into consideration…

Q: Uncle Ben saved $800.000 during the 25 years that he worked for a major corporation. Now he has…

A: As per the Honor code of Bartleby we are bound to given the answer of first three sub part only,…

Q: Project Diggy cost P15,000 and its expected to produce cash flows of P4,500 per year for 5 years.…

A: IRR and MIRR are capital budgeting techniques used to evaluate whether it is profitable to invest in…

Q: DeCablo, Inc. owns a machine costing P105,000. This has an estimated useful life of 6 years with a…

A: Note. According to bartleby guidelines, if question involves multiple sub parts , then 1st sub 3…

Q: 3. Saundra purchased $8,000 worth of cryptocurrency several years ago. She expects the value of the…

A: The alternative payment method known as a cryptocurrency was developed utilizing encryption methods.…

Q: Due the assumptions of the CAPM, all of the following results obtain, except that a) everyone…

A: CAPM stands for Capital Asset Pricing Model, it is a financial model that calculates the expected…

Q: Year End 2004 2005 2006 2007 2008 2009 Stock X Realized Return 20.1% 72.7% -25.7% 56.9% 6.7% 17.9%…

A: In the given case, we have given the realized return of stocks are given . Firstly, we calculate the…

Q: Mender Co. will be receiving 700,000 Australian dollars in 180 days. Currently, a 180-day call…

A: Data given: Amount to be received in 180 days = 700,000 Australian dollars 180-day call option:…

Q: The Global Advertising Company has a tax rate of 40%. The company can raise debt at a 12% interest…

A: The collection of multiple sources from where an entity has acquired funding is regarded as its…

Q: 1. Which of the following statements most appropriately describe how agency cost affect the firms…

A: First let us define agency costs. Shareholders of a company are the owners of the firm, and they…

Q: a) MacKenzies has an operating cycle of 112 days, a receivables period of 42 days, and a payables…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 1. Consider the data in the following table for a hypothetical two-stock version of the Dow Jones…

A: We have a hypothetical two-stock version of the Dow Jones Industrial Average. We have to find %age…

Q: 2. Use diagrams to show Ricardian Equivalence and the Impact of a Budget Surplus on Credit Markets.…

A: According to the Ricardian Equivalence theory, interest rates are unaffected by deficits since…

Q: A pension fund faces a promised outflow of $5 million in 6 years. Its managers plan to dedicate a…

A: HONOR CODE: “Since you have posted a question with multiple sub-parts, we will provide the solution…

Q: The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31,…

A: There are two unrelated questions appearing on the board. The first question doesn't have the…

Q: Consider a state space model. Suppose there are two economic states in the next year. The…

A: Expected value is calculated as shown below. Expected value (E)=∑i=1nVi×PiHere,Value of scenario…

Q: You are a U.S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as…

A: Arbitrage: It refers to the activity of simultaneously purchasing and selling the asset for the…

Q: John Hill is a Sydney-based investor. He has been closely following his investment in 1,000 shares…

A: Exchange rate: It is the rate that is used to calculate the rate of one currency into another…

Q: There is a probability of 25 percent that the economy will boom; otherwise, it will be normal. Stock…

A: Expected return on a stock is calculated as the weighted average of the returns of each stock.…

Q: a) What will be the agreed rate if you enter an FRA agreement with this dealer? Explain your answer.…

A: FRA is an over-the-counter derivative instrument to lock in the interest rate. FRA stands for…

Q: GloboChem is an all-equity firm with expected (annual) free cash flow of $100M next year. Free cash…

A: Unlevered firms are those firms that hold only equity capital and levered firms are those who are…

Q: ULIP has a component of Opions are health insurance, accident insurance life insurance…

A: The insurance is the contract under which it promises to pay or indemnify the losses caused to the…

Q: (b)Honeydew Sdn. Bhd has been presented with an opportunity to invest in a project. Investment…

A: Internal Rate of Return: It is the rate at which the project or investment will yield zero net…

Concept explainers

Receivables Management

Question

b) The Cheung Company has a beginning receivables balance on January 1st of $930.
Sales for January through April are $970, $1,050, $1,330, and $1,460, respectively.
The accounts receivable period is 36 days. How much did the firm collect in the month
of March? Assume a 30-day month.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Amusement tickets estimated sales are: What are the balances in accounts receivable for April, May, and June if 60% of sales are collected in the month of sale, 30% are collected the month after the sale, and 10% are collected the second month after the sale?
Nonnas Re-Appliance Store collects 55% of its accounts receivable in the month of sale and 40% in the month after the sale. Given the following sales, how much cash will be collected in February?
ABC, Incorporated, has a beginning receivables balance on January 1st of $620. Sales for January through April are $380, $410, $490 and $510, respectively. The accounts receivable period is 60 days. How much did the firm collect in the month of March? Assume 365 days per year.
A company has expected sales for January through April of $9,800, 59, 500, $13, 800, and $9,500, respectively. Assume each month has 30 days and the accounts receivable period is 36 days. How much does the company expect to collect in the month of May?
As of January 1, 2021, NUBD Co. had an accounts receivable of P500,000. The sales for January, February, and March were as follows: P1,200,000, P1,400,000, and P1,600,000, respectively. Of each month’s sales, 80% is on account. 60% of account sales is collected in the month of sale, with remaining 40% collected in the following month. What is the accounts receivable balance as of March 31, 2021? A. P720,000 B. P480,000 C. P587,200 D. P512,000
Assume receivables of $20,000 at the start of the January are all collected during the month; if sales for January and February are $400,000 and $300,000 respectively; the company typically receives payment from 20% of its customers within the same month, 60% the following month, and the remaining 20% by the end of the second following month, how much would accounts receivable be at the end of February?
Baker Industries has a 45 day accounts receivable period. The estimated quarterly sales for this year, starting with the first quarter, are $1,200, $1,400, $1,900 and $3,200, respectively. How much does the firm expect to collect in the third quarter? Assume that a year has 360 days. A)$1,300 B)$1,650 C)$1,400
Jasper Company has sales on account and for cash. Speclfically, 63% of Its sales are on account and 37% are for cash. Credit sales are collected In full in the month following the sale. The compay forecasts sales of $526.000 for April, $536.,000 for May, and $561,000 for June. The beginning balance of Accounts Recetvable Is S291.600 on Aprll 1. Prepare a schedule of budgeted cash recelpts for Aprl, May, and June.
As of January 1 of the current year, Grayson Company had accounts receivable of $40,000. The sales for January, February, and March were $120,000, $140,000, and $150,000, respectively. Of each month's sales, 20% are for cash. Of the remaining 80% (the credit sales), 60% are collected in the month of sale, with the remaining 40% collected in the following month. What is the total cash collected (both from accounts receivable and for cash sales) in the month of January?
ABC Incorporated, has a beginning receivables balance on January 1st of $620. Sales for January through April are $380, $410, $490 and $510, respectively. The accounts receivable period is 60 days. How much did the firm collect in the month of March? Assume 365 days per year. Multiple Choice $620 $490 $510 $380 $410
ABC Co. has an average collection period of 60 days. Total credit sales for the year were $3,000,000. What is the balance in accounts receivable at year-end?
Beech's managers have made the following additional assumptions and estimates: 1. Estimated sales for July, August, September, and October will be $280,000, $300,000, $290,000, and $310,000, respectively. 2. All sales are on credit and all credit sales are collected. Each month's credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July. 3. Each month's ending inventory must equal 25% of the cost of next month's sales. The cost of goods sold is 75% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July. 4. Monthly selling and administrative expenses are always $52,000. Each month $5,000 of this total amount is depreciation expense and the remaining $47,000 relates to expenses that are paid in the month they are incurred. 5. The…