Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - Accounts receivable changes without bad debts - Tara's Textiles currently has credit sales of $359 million per year and an average collection period of 63 days. Assume that the price of Tara's products is $60 per unit and that the variable costs are $55 per unit. The firm is considering an accounts receivable change that will result in a 20.2% increase in sales and a 19.2% increase in the average collection period. No change in bad debts is expected. The firm's equal-risk opportunity cost on its investment in accounts receivable is 13.1%. (Note: Use a 365-day year.)
Required -
a. Calculate the additional profit contribution from new sales that the firm will realize if it makes the proposed change.
b. What marginal investment in accounts receivable will result?
c. Calculate the cost of the marginal investment in accounts receivable.
d. Should the firm implement the proposed change? What other information would be helpful in your analysis?
The bonds are convertible into 50 shares of P10 par value ordinary shares for each P1,000 bond. What is the gain on the conversion of the bonds
Let's discuss how you see the future of accounting. what changes should be made, why and will they actually be made ever? As we know accounting rules are slow
A self-employed person who is unmarried had the following data in 2019: Compute the Taxable Net Income and Income Tax Due
John's specialty store uses a perpetua; inventory system. The following are some inventory transactions for month of May 2009: 1. John's purchased merchandise on account for $5,000.
Parker Company purchases a building for $200,000. If they use the straight line method for calculating depreciation, what is the annual depreciation
Culver, Inc. established a stock-appreciation rights (SARs) program on January 1, 2020, Compute Culver's compensation expense for 2020 and 2021
How many shares will remain after the repurchase? Immediately after the repurchase, what are the intrinsic value of equity and the intrinsic stock price?
The items were identified to comprise LAKERS Company's liabilities as of December 31, 2021 - Find the amount presented under total noncurrent liability
The account would be recorded as a debit or a credit
It expects the project will be completed on time and on budget. How much profit should Essetle Construction report for the second year of the contract
in february one of the processing departments at whisenhunt corporation had beginning work in process inventory of
The New City College reported deferred revenues of $607,000 as of July 1, 2011, the first day of its fiscal year. Record the following transactions related.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd