What is the amount of the companys accounts receivable

Assignment Help Financial Management

Reference no: EM131016165

Suppose a corporation sells 5,000 units of a product 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 percent of the customers. What is the amount of the company’s accounts receivable?

Next, in reaction to sales by its main competitor, the company is considering a change in its credit policy to terms of 3/10, net 30 to preserve its market share. How will this change in policy affect accounts receivable?

Reference no: EM131016165

Questions Cloud

The bond is selling at a premium : If the value of a bond B0 is less than its par value, the bond is selling at a premium. The yield to maturity on a bond with a current price equal to its par value will always equal the coupon interest rate. A bond that is issued at a premium has a c..

Effective long term planning : ACME Refining is known for effective long term planning. its major facility, #1, will be decommissioned beginning in 25 yrs. the cost for decommissioning will begin, at the end of 25 yrs, with a cost of 6.5 million, and this cost increases by7% each ..

Held responsible for the losses of the investors : As either a member of Bernie Maddof's family, or as one of his investment feeders, to what extent should you be held responsible for the losses of the investors?

What is current market price of the bonds : Fresh Water, Inc. sold an issue of 7-year $1,000 par value bonds to the public. The bonds have a 9.14 percent coupon rate and pay interest annually. The current market rate of interest on the Fresh Water, Inc. bonds is 8.04 percent. What is the curre..

What is the amount of the companys accounts receivable : Suppose a corporation sells 5,000 units of a product 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 percent of the customers. What is the amount of the company’s accounts receiva..

Long-term debt-what is the operating cash flow : In 2008 a firm has 2,550,000 in long-term debt, 760,000 in common stock and an addition to surpuls of 6,300,000. In 2009 the firm has long-term debt of 3,850,000, capital stock of 905,000 and an additional paid in surplus of 8,500,000, dividends paid..

Firms beginning cash balance and ending cash balance : The change between a firm's beginning cash balance and ending cash balance would equal

What would the annual yield to maturity be on the bond : A few years ago, Spider Web, Inc. issued bonds with a 13.85 percent annual coupon rate, paid semiannually. The bonds have a par value of $1,000, a current price of $875, and will mature in 22 years. What would the annual yield to maturity be on the b..

Worked for a company with a retirement program : Sammy has worked for a company with a retirement program, and today is retiring from her job with the amount of $268000 in her retirement account. She decides to withdrawal an equal amount from this account, once a year, beginning immediately, and en..

User Account

All Pages