Section C, Financial Management

Assignment Help:
Honey Well company is contemplating to liberalize its collection effort. It''s present sales are 1000000 and it''s average collection period is 30 days, it''s expected variable cost to sales ratio is 85% and it''s bad debt ratio is 5%. The company''s cost of capital is 10% and tax is 40%. The proposed liberalization in collection effort increases sales to 1200000, increases average collection period by 15 days and increases the bad debt ratio to 7%. Determine the change in profit.

Related Discussions:- Section C

Cash deficit - cash budget, In two of the four months of the cash budget Th...

In two of the four months of the cash budget Thorne Co has a cash shortage with the highest cash deficit being the opening balance of $40000. This cash shortage which has occurred

Financial managemant, Task - 01 During its financial year ended 30 June 2...

Task - 01 During its financial year ended 30 June 20x7 Beavers Ltd, an engineering company, has worked on several contracts. Information relating to one of them is given below.

How to calculate the net income of a year, Is the net income of a year the ...

Is the net income of a year the money the company made that particular year or is it a number whose significance is quite doubtful? The net income of a year is not money that a

Operating cycle, disscus the applicability of operating cycle in vegetable ...

disscus the applicability of operating cycle in vegetable in uganda

Assignment, BFN1014 ...

BFN1014 ASSIGNMENT 2 TRI 2 2012 2013

Find out the interest rate parity is currently holding, Presently, the spot...

Presently, the spot exchange rate is $1.50/£ and the three-month forward exchange rate is $1.52/£. The three-month interest rate is 8.0% per year in the U.S. and 5.8% per year in t

Consistency in accounting, Consistency - ACCOUNTING postulate that stipulat...

Consistency - ACCOUNTING postulate that stipulates, except as otherwise noted in FINANCIAL STATEMENT, same accounting procedures and policies have been followed from period to peri

Bond market innovations, As liberalization is gathering momentum, cor...

As liberalization is gathering momentum, corporate treasures and merchant bankers are in the process of devising new products to suit the needs of investors and c

Leverage, What is the importance of leverage in business management of a sm...

What is the importance of leverage in business management of a small scale company

Write Your Message!

Captcha
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