Explain accounts receivables

Assignment Help Finance Basics
Reference no: EM1317394

Explain Accounts receivables

Collins Office Supplies is considering a more liberal credit policy to increase sales, but expects that 9 percent of the new accounts will be uncollectible. Collection costs are 5 percent of new sales, production and selling costs are 78 percent, and accounts receivable turnover is five times. Assume income taxes of 30 percent and an increase in sales of $80,000. No other asset build-up will be required to service the new accounts.

Given the income determined in part b and the investment determined in part d, should Collins extend more liberal credit terms

Reference no: EM1317394

Questions Cloud

Make a vertical analysis of income statement for two years : Make a vertical analysis of income statement for two years Using the data in these abbreviated income statements
Objective type questions on accounts receivables : Objective type questions on accounts receivables and an annuity may be defined as and which allows the corporation to force an early maturity on a bond issue
Transformations & asymptotes of functions : Transformations & asymptotes of functions.
Significant correlation among attitudes for husbands - wives : Calculate the Pearson correlation for these data also determine whether there is a significant correlation among attitudes for husbands also wives.
Explain accounts receivables : Explain Accounts receivables and No other asset build-up will be required to service the new accounts
Basics of parabolas and plotting : Basics of parabolas and plotting.
Describe accounts receivables : Describe Accounts Receivables and also needs to increase its level of inventory to support new sales and that inventory turnover is four times
Calculate the value of pearson correlation : Calculate the value of Pearson correlation. Illustrate what information is provided by the numerical value of the Pearson correlation.
Account receivables using decision making : Account receivables using decision making and what would be Collins's incremental after tax return on investment

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of security market line

Computation of Security Market Line (SML) of stocks and its analysis and Assume a U.S. Treasury rate of 3% as the risk free rate in your SML

  Summarised views of the concept and the solutions

Summarised views of the concept and the solutions found in The Goal to solve or alleviate the company

  Calculation of future value of cash flows at various rates

Calculation of future value of cash flows at various rates and lives using following combinations of rates and times

  Cost of retained earnings based on discounted cash flow

Evaluate cost of equity, cost of retained earnings based on discounted cash flow, C A P M and Bond cost plus premium methods.

  Risk as well as return computation using capital asset

Risk as well as return computation using capital asset pricing model and If the market risk premium is 8%, the risk-free rate of return is

  Objective type questions on issue of dividend

Objective type questions on issue of dividend, which cost are a function of time and not sales and typically contractual

  Determine the effective rate of interest for a nominal rate

Determine the effective rate of interest for a nominal rate

  Various techniques of inventory management

An investor is thinking of investing in a recurring deposit scheme that offers an interest rate of 12% per annum

  Objective type question on dividend decisions

Objective type question on dividend decisions and Low dividends may increase stock value according to which

  Objective type questions on bond valuation

Objective Type questions on bond valuation and Long-term debt that matures within one year and is to be converted into stock should be reported

  Statement of cash flows that describe the change

Statement of cash flows that describe the change that occurred in cash and you may assume that the change in each balance sheet amount is due to a single event

  Computation of payback period

Computation of payback period and he company expects, as a result, cash flows of $979,225, $1,158,886

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd