Hhow much will recievables balance increase what would be

Assignment Help Finance Basics
Reference no: EM13478571

The new credit manager of Kays Dpartment store plans to liberalize the firms credit policy.The firm currently generates credit sales of $575,000 annually. te more lenient the credit policy is expected to produce credit sales of $750,000. The bad debt losses on additional sales are projected to be 5% despit any additional $15,000 collection expenditure.The new manager anticipates production and selling costs other than additional bad debt and collection expenses will remain at the 85% level. The firm is in the 34%tax bracket.if the firm maintains its recievables turnover 10 times, how much will the recievables balance increase,what would be Kays incremental after tax return on investment? Assuming additional inventory of $35,000 is required to support the additional sales, compute the after tax return on investment.

Reference no: EM13478571

Questions Cloud

Jemisons cfo estimates that the distribution center will : in the spring of 2010 jemison electric was considering an investment in a new distribution center. jemisons cfo
Find the current price of the a bonds with 3 years to : the nickelodeon manufacturing co. has a series of 1000 par value bonds outstanding.each bond pays interest
Biotechnology is a truly vast subject i would like you to : biotechnology is a truly vast subject. i would like you to read the following articles which presents biotechnology in
Create an equally weighted portfolio of five computer : create an equally weighted portfolio of five computer software stocks. is such a portfolio a diversified portfolio?
Hhow much will recievables balance increase what would be : the new credit manager of kays dpartment store plans to liberalize the firms credit policy.the firm currently
Discuss global economic outlook and research the current : discuss global economic outlook and research the current and long-term for the following countries united states
Assume there is no need for additional investment in : a manufacturing company is thinking of launching a new product. the company expects to sell 950000 of the new product
If bank quotes the rate of 12 find the interest rate be : myopic optical is seeking to borrow 75000 from national bank.a. if the bank requires a 20 minimum compensating
Mslauren weeks purchased 100 acres of land in 1990 for : ms.lauren weeks purchased 100 acres of land in 1990 for 100000.if she sells the land for 5000 per acre in 2010what

Reviews

Write a Review

Finance Basics Questions & Answers

  Question on stock repurchase

Beta Industries has a net income of $2,000,000 and it has $1,000,000 shares of common stock outstanding. The company's stock currently trades @$32 a share.

  What is the price of annual coupon payments

Company A has a bond with a par value of $1,000.00 and a coupon rate of 8%. It has a ten year maturity date with a yield to maturity of 6%. What is the price of annual coupon payments? Semi-annual? Quarterly? Monthly?

  What is reduction in outstanding cash balances as a result

What is the reduction in outstanding cash balances as a result of implementing the lockbox system?

  What price must german motors charge for the same model

What price must German Motors charge for the same model on January 29, 2013 to realize the same amount of euro ( ) as it did in 2008. ($0.9150/Euro on 1/20/08 and $0.9950/Euros on 1/29/2013)

  Italys largest bank by assets on tuesday reported its

cleaning up after a good night can be painful. but italys unicredit is at least offering investors an invite to the

  How much must he deposit at the end of each year

Zheng Sen wishes to accumulate $1 million by the end of 20 years by making equal annual end - of -year deposits over the next 20 years. If Zheng Sen can earn 10 percent on his investments, how much must he deposit at the end of each year?

  What is the annual rate of return on the bond

If a United States Savings bond can be purchased for $29.50 and has a maturity value at the end of 25 years of $100, what is the annual rate of return on the bond? (Please calculate the arithmetic solution and show your work)

  What is the best estimate of these bonds remaining life

Assume that interest rates are expected to remain at their current level. What is the best estimate of these bonds' remaining life?

  The company then expects to settle down to a

givens inc. is a fast growing technology company that paid a 1.25 dividend last week. the companys expected growth

  Compute earnings per share for the year 2010

Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 20 percent. Compute earnings per share for the year 2009. Compute earnings per share for the year 2010.

  Us about the current tax system

Instructor of a one-day tax seminar to inform international students studying business in the United States about the current tax system.

  What is yield that trevor would earn by selling the bond

Trevor Price bought 10-year bonds issued by Harvest Foods five years ago for $964.05. The bonds make semiannual coupon payments at a rate of 8.4 percent. If the current price of the bonds is $1,071.10, what is the yield that Trevor would earn by s..

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