Effect on accounts receivable

Reference no: EM1354529

Essence of Skunk Fragrances, Ltd. sells 5600 units of its perfume collection each year at a price per unit of $425. All sales are on credit with terms of 1/10, net 40. The discount is taken by 60 percent of the customers, by its main competitor, Sewage Spray. Essence of Skunk is considering a change in its credit policy to terms of 2/10, net 30 to preserve its market share. How will this change in policy affect accounts receivable?

Reference no: EM1354529

Questions Cloud

Calculate market value of outstanding preferred stock : Jones Design wants to estimate the value of its outstanding preferred stock. The preferred stock issue has an $80 par value and pays an yearly dividend of $6.40 per share.

Systems-cybernetic perspective : Compare and contrast the issue of presenting problems from an individual psychology perspective and from a Systems-Cybernetic perspective.

How many electrons does harr dryer represent : A sport utility vehicle (SUV) and a sports car travel around the same horizontal curve. The SUV has a static stability factor of 0.80 and can negotiate the curve at a most speed of 18 m/s without rolling over.

Organizational strategy - ge capital : Determine the use of organizational learning and knowledge management in the organization and how the approach impacts the current strategy.

Effect on accounts receivable : Essence of Skunk Fragrances, Ltd. sells 5600 units of its perfume collection each year at a price per unit of $425. All sales are on credit with terms of 1/10, net 40. The discount is taken by 60 percent of the customers, by its main competitor, S..

Explain how can tax cuts help revive the economy : Aggregate Demand-some-not all--of these and/or other terms from this week. Explain how can tax cuts help revive the economy.

Find the interest amount earn on the investment : Technical College earned $3,445,553 in state aid on September 15 for the fall academic semester. The Vice-president for finance decided to invest $2,000,000 in a two month investment that pays 11.5 percent simple interest.

Writing a confrontation statement : Using the following statement: "My daughter and I don't get along well. I feel that I am really trying, but she doesn't respond. Only last week I brought her a present, but she just ignored it" write a confrontation statement.

Explain high-voltage electric transmission wire : Explain While adjusting a television antenna beside his mobile home and underneath a high-voltage electric transmission wire Prince received an electric shock resulting in personal injury

User Account

All Pages