Top Posters
Since Sunday
t
7
m
6
k
6
F
5
j
5
t
5
j
5
G
5
f
5
a
5
d
5
c
5
Home Q & A Board Other Fields Homework Help Business Management
New Topic  
WXWP WXWP
wrote...
Go to Answer
Posts: 747
Rep: 0 0
6 years ago
An entrepreneur who is considering purchasing a business is analyzing a company's accounts receivable.  The following table summarizes her findings.

   Age of Accounts   Amount   Probability of Collection
   0 - 30 days   $12,000   .96
   31 - 60 days   $  4,000   .87
   61 - 90 days   $  2,500   .71
   91 - 120 days   $  1,400   .65
   121 + days   $     800   .24

How much should this potential buyer be willing to pay for these accounts receivable?
A) Nothing ; a buyer should never purchase existing accounts receivable.
B) $20,700
C) $17,877
D) Not enough information given to determine
Textbook 
Essentials of Entrepreneurship and Small Business Management

Essentials of Entrepreneurship and Small Business Management


Edition: 6th
Author:
Read 86 times
1 Reply
Replies
Answer verified by a subject expert
CalbertoCalberto
wrote...
#1
Top Poster
Posts: 738
Rep: 4 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

WXWP Author
wrote...

6 years ago
This site is awesome
missnoname
wrote...

Yesterday
Thanks
joyceess
wrote...

2 hours ago
Smart ... Thanks!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  940 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 101
  
 6959
  
 5503
Your Opinion
Which 'study break' activity do you find most distracting?
Votes: 820
Previous poll results: What's your favorite math subject?