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Calculate the average daily balance and finance charge?
Calculate the average balance and finance charge
calculate the average collection period using the following information:credit sales= 200 000cash sales= 150 000debtors= 500 000?
A: Calculating the average collection period is a critical financial metric that allows companies to gauge how long it takes to receive payments from their customers on average. This information is essential for businesses to manage their cash flow effectively and make informed decisions about credit policies and debt collection strategies. By staying on top of this metric, companies can maintain healthy financial stability and keep their operations running smoothly. This measure helps organizations to ensure adequate cash flow and make informed decisions about their financial health. This metric provides valuable insights into a company's financial health, allowing businesses to better manage their cash flow and improve their overall financial performance. It enables the company to keep track of its cash flow and make informed decisions about managing debtors and creditors. To calculate the average collection period, you would divide the total accounts receivable by the average daily sales. Using the information provided, we can calculate the credit sales by subtracting the cash sales from the total sales: Credit sales = Total sales - Cash sales Credit sales = $200,000 - $150,000 Credit sales = $50,000 Next, we can calculate the average daily sales by dividing the total sales by the number of days in the accounting period (for example, 365 days in a year, or 30 days in a month): Average daily sales = Total sales / Number of days Assuming a 30-day month, Average daily sales = $350,000 / 30 Average daily sales = $11,666.67 Finally, we can calculate the average collection period by dividing the total accounts receivable by the average daily sales: Average collection period = (Accounts receivable / Average daily sales) x Number of days Average collection period = ($500,000 / $11,666.67) x 30 Average collection period = 128.57 days Therefore, the average collection period for this company is approximately 128.57 days.
If the average daily sales is high is the collection period high or low?
low
How do you calculate average daily sales?
annual sales*(1/365)
How you calculate RevPAR?
Multiply your average daily room rate by occupacy rate
What is Accounts receivable collection period ratio formula?
Average Colection period: Accounts Receivables divided by Average daily credit sales
How do you calculate average daily cost of goods sold?
Annual cost of goods sold / 365
How do you calculate monthly average balance?
Monthly average balance is the sum of daily balances in a month divided by the number of days in that month.
How do you calculate market return in Excel?
For calculating the market return, the average daily returns of S&P 500 or Nasdaq or any other Index (that represents a 'market') over the last few years (say 5 years) can be computed. These daily returns are then annualized (average daily return * 365). In Excel, you can download the daily closing prices of the index. Calculate daily returns of the Index using the formula (P1 / P0 - 1), (P2 / P1 - 1) and so on.... This will give you daily returns on the stock. Calculate the average of all the values (daily returns) obtained using "Average" function. Annualise the returns as (Average Daily Return * 365) You can get stock prices in Excel format with the spreadsheet in the related link. It automatically downloads historical prices from Yahoo Thanks Vikash
What is the average book depth of the novels in the library's collection?
To find the average book depth of the novels in the library's collection, you would need to measure the depth of each book and then calculate the average by adding up all the depths and dividing by the total number of books.
What is the average back length of the shirts in this collection?
To find the average back length of the shirts in this collection, measure the back length of each shirt and then calculate the mean by adding all the measurements together and dividing by the total number of shirts.
What are the uses of average in your daily life?
Credit card companies use average daily balance to calculate interest charges. Each day's balance is added together, and then divided by the number of days in the billing cycle.
