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In order to enhance sales from their present annual $35 million, ABC Company, a retailer, is considering more liberal credit standards. Presently, the firm has an average collection period of 30 days. It believes that with increasingly liberal credit standards, the following will result: Credit Policy A B C DEnhance in sales from previous level (in millions) $6.5 $4.8 $2.6 $1.8 Average collection period for incremental sales (days) 45 60 90 150Bad-Debt losses on incremental sales 3% 4% 6% 9%
The prices of its products average $30 per unit, and variable costs average $26 per unit. If the company has a before-tax opportunity cost of 20%, which credit policy should be pursued?
Q. Explain briefly the role of computers in accounting? Computers can be used as accounting machines and perform all the functions which accounting machines perform. Some of th
How to treat them both which affect the trial balance and which dont affect the trial balance
INVESTMENT OF FUNDS TO PROVIDE FOR LEGACIES AND INTEREST ON LEGACIES (a) Where a general legacy is given for life, the sum bequeathed shall, at or before the end of a year afte
Beginning balance 24,000 cash Sales 250,000 Gross profit 45% of sales Accounts receivable increase by 24,000 Accounts payable increased by 51,000 Inventory increased by 98,000 Sell
Application Information The application must include information as to: The full name of the deceased; The death and place of his death; Whether or not the decease
Potential sources of finance for very new businesses Initial owner finance is almost always the first source of finance for a business, whether from the owner or from family co
what is the different between prorfit and margin prorfi
what is the process to complete my debtor management project.
features of branch accounts
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