How will this change in policy affect accounts receivable

Reference no: EM13296178

Essence of Skunk Fragrances, Ltd., sells 5,000 units of its perfume collection each year at a price per unit of $380. All sales are on credit with terms of 1/10, net 30. The discount is taken by 35% of the customers. What is the amount of the company's accounts receivable? In reaction to sales by its main competitor, sewage spray, Essence of Skunk is considering a change in its credit policy to terms 3/10, net 30 to preserve its market share. How will this change in policy affect accounts receivable?

Reference no: EM13296178

Questions Cloud

Define what is the empirical formula of the compound : An analysis shows that 2.97 g of iron metal combines with oxygen to form 4.25 g of an oxide of iron. What is the empirical formula of the compound?

Compute the total value of the 90 bonds : Compute the price of a bond (refer to "semiannual Interest and Bond Prices" in Chapter 10 for review if necessary).

Compute the speed of the clay immediately before impact : A 11.0-g wad of sticky clay is hurled horizontally at a 130-g wooden block initially at rest on a horizontal surface. what was the speed of the clay immediately before impact

Explain left half-cell has a pt wire dipping into a beaker : A galvanic cell is produced as follows: Left half-cell has a Pt wire dipping into a beaker containing an equimolar mixture of Cr+2 and Cr+3 . [Cr3+ + e-??Cr+2 E°-= -0.42 V] Right hand cell has a Tl rod immersed in 1.00 M TlClO4. [Tl+1 + e-??Tl(s) ..

How will this change in policy affect accounts receivable : Essence of Skunk is considering a change in its credit policy to terms 3/10, net 30 to preserve its market share. How will this change in policy affect accounts receivable?

How far would you have gone if the bike could move : Suppose you are riding a stationary exercise bicycle, and the electronic meter indicates that the wheel is rotating at 12.7 rad/s. how far would you have gone if the bike could move

Healthcare issue : Write about it using the criteria outlined and If the topic does not lend itself to these criteria, it is probably not a good topic to consider.

What primary care rate will families first propose : Each primary care physician can handle about 3,000 patient visits per year, for which he or she is paid $180,000. What primary care rate (PMPM) will Families First propose to ABC Company?

Explain starting with 1.20 ml of an alcohol : Starting with 1.20 mL of an alcohol (MW 88, d = 0.8114 g/mL) and 3 mL of glacial acetic acid (MW 60, d=1.06 g/mL), calculate the theoretical yield in moles.

User Account

All Pages