Compute the value of the average collection period
Problem:
Thompson Wood Products has credit sales of $2,160,000 and accounts receivable of $288,000.
Required:
Question: Compute the value of the average collection period.
Note: Provide support for your rationale.
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If the company is in a 34 percent tac bracket, what is the after tax cost of capital to Walgreen for the bonds? Note: Be sure to show how you arrived at your answer.
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Question: Compute the value of the average collection period. Note: Provide support for your rationale.
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