Explain accounts receivables

Assignment Help Finance Basics
Reference no: EM1317394

Explain Accounts receivables

Collins Office Supplies is considering a more liberal credit policy to increase sales, but expects that 9 percent of the new accounts will be uncollectible. Collection costs are 5 percent of new sales, production and selling costs are 78 percent, and accounts receivable turnover is five times. Assume income taxes of 30 percent and an increase in sales of $80,000. No other asset build-up will be required to service the new accounts.

Given the income determined in part b and the investment determined in part d, should Collins extend more liberal credit terms

Reference no: EM1317394

Questions Cloud

Make a vertical analysis of income statement for two years : Make a vertical analysis of income statement for two years Using the data in these abbreviated income statements
Objective type questions on accounts receivables : Objective type questions on accounts receivables and an annuity may be defined as and which allows the corporation to force an early maturity on a bond issue
Transformations & asymptotes of functions : Transformations & asymptotes of functions.
Significant correlation among attitudes for husbands - wives : Calculate the Pearson correlation for these data also determine whether there is a significant correlation among attitudes for husbands also wives.
Explain accounts receivables : Explain Accounts receivables and No other asset build-up will be required to service the new accounts
Basics of parabolas and plotting : Basics of parabolas and plotting.
Describe accounts receivables : Describe Accounts Receivables and also needs to increase its level of inventory to support new sales and that inventory turnover is four times
Calculate the value of pearson correlation : Calculate the value of Pearson correlation. Illustrate what information is provided by the numerical value of the Pearson correlation.
Account receivables using decision making : Account receivables using decision making and what would be Collins's incremental after tax return on investment

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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