Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
M/s ABC is seeing relaxing its collection efforts. At current its sales are as Rs.40 lakhs, the ACP is here 20 days and variable cost to sales ratio is .8 and bad debts are as .05 percent. Relaxation in collection attempt is exacted to push sales up through Rs. 5 lakhs, raise ACP to 40 days and bad debt ratio to 0.06. ABC tax rate is 40%. Compute the effect of relaxing credit effort on net profit.
Solution:
? BD = bn (S0+ ? S) -b0 S0
= .06 (40+5) - .05 × 40
= 2.7 - 2
=.7 lakhs
? I = ? I = (ACPn - ACP0) [S0/360] + V(ACPn)( ?S/360)
= 40/360 (40 - 20) + 5/360 × 40 × .8
= 20/9 + 4/9
?I = 2.6666667
?NP = [ ?S (1 - V ) - ?BD] (1 - t ) - k?I
= [5 (.2) - .7] (.6) - .12 (2.666667)
= .18 - .32
= -.14 lakhs
As the effect on net profit is negative hence the credit efforts must not be relaxed.
The president expects sales to increase by 12% next year. By how much should net operating income increase? Sales $2,000,000 Variable expenses 1,000
IF net income totaled $18,000 for one year, beginning assets were $100.000 and ending assets were $140,000, then Return on Assets for the year as a percentage will be?
Explain Programmer budgeting According to burkhead According to burkhead a program budget serves a different purpose than performance budget. A performance budget is useful fo
What is kaizen Kaizen is the Japanese term for continuous improvement. The kaizen concept was pioneered by in Japan by Toyota as daily challenge to all its to improve their pro
Z or t Statistics If n ≥30 we use Z, if, n Ho: B = O that is, there is no relationship between X and Y HA: B≠ O There is a significant relationship between X and Y The l
Types of Simulation 1) Operational Gaining Method: This refers to those situations involving conflict of interest among players or decision makers within the framework o
Select the cost driver(s): This might also be termed to as independent, explanatory or predictor variable. A cost driver can be stated as any factor whose change causes a chang
major ways that these complexities might impact a business
The revolving credit facility will be specified by the banker to the customer through providing specific amount of credit facility for a continuous basis. The borrower will not be
Right now you are 20 years old and you have decided that you want to have $2,000,000 in the bank when you turn 65 years old. How much must you deposit each year to reach your goal
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd