Determine the consequences of this transaction

Reference no: EM13301522

Your firm receives a $5 million order on the last day of the year, which your firm fills with inventory on hand that costs your firm $2 million. Your customer picks up the inventory on the day it is ordered and pays your firm $1 million, and your firm bills the customer for the balance of the order, stipulating that the balance is to be paid in 30 days. Your firm is cash-based. Ignore any income tax implications. Determine the consequences of this transaction for each of the following:

• Revenue
• Earnings
• Receivables
• Inventory
• Cash

Reference no: EM13301522

Questions Cloud

Define the rate constant for the second order reaction : The rate constant for the second order reaction 2NO2 ???&??; N2O4 is 2.79 L/mol •min at 48 oC. If the initial concentration of NO2 is 1.05 M , what is the half-life

Find optimal order quantity per order : The store policy is never to have stockouts of the laptops. The store is open for business every day of the year except Christmas Day.

Determine the resistance of the resistor in this circuit : A generator is connected to a resistor and a 0.032-H inductor in series. Determine the resistance of the resistor in this circuit

Explain the balanced chemical equation for the reaction : What is the balanced chemical equation for the reaction used to calculate Delta H f of SrCO3(s) ? If fractional coefficients are required, enter them as a fraction

Determine the consequences of this transaction : Your firm is cash-based. Ignore any income tax implications. Determine the consequences of this transaction for each of the following.

Explain the combustion of ethene c2h4 occurs : The combustion of ethene, C2H4 , occurs via the reaction C2H4 (g) + 3O2(g) ===> 2CO2(g) + 2H2O(g) with heat of formation values given by the following table

What is suncoast current debt ratio : Is the financial risk of the business different under the two acquisition alternatives?

Explain value of the gas constant is 0.08206 l x atm/mol x k : The value of the gas constant is 0.08206 L x atm/(mol x K). You may also find the conversion factors 1 atm = 760 torr and Tk = Tc + 273 useful.

Economic calculation to understand the limits : Write a 2000 word essay on the contribution of the concept of economic calculation to understand the limits of the corporation and the structure of governance.

User Account

All Pages