Explain the buildup of receivables

Reference no: EM1345153

Lealos, Inc., is considering a change in its cash-only sales policy. The new terms of sale would be net one month. Based on the following information, evaluate if Lealos should proceed or not. Describe the buildup of receivables in this case. The required return is .95 percent per month.

Current Policy New Policy
Price Per Unit $720 $720
Cost Per Unit $495 $495
Unit Sales per month 1,100 1,140

Reference no: EM1345153

Questions Cloud

Explain brand distribution channels : Pick a health as well as beauty brand and item you use regularly for instance shampoo, moisturizer, shaving cream, razor blades and so on. Imagine this brand is spreading its reach to a new target audience with a new product, Explain brand Distrib..

Financial forces effecting balance of payments : Describe how financial forces such as tariffs, taxes, inflation, and currency exchanges effect balance of payments.

Evaluate the degree operating leverage : Evaluate the Degree Operating Leverage and the Degree Financial Leverage for the last two years. Did your company increased or decreased the overall risk?

Difference in fixed exchange rate and floating rate systems : Describe the major differences in fixed exchange rate and floating rate systems. You require to compare the systems in terms of their impacts on the effectiveness of monetary and fiscal policies

Explain the buildup of receivables : Evaluate if Lealos should proceed or not and explain the buildup of receivables in this case. The required return is .95 percent per month.

Explain will this information alter your pricing decisions : Camera Shop will discontinue its operations next month. Explain will this information alter your pricing decisions today.

Current assets-comprehensive income-personal allowances : What is Comprehensive Income and give a Journal Entry example to record comprehensive Income? How is it reported?

Calculate cost of retained earnings and new common stock : The management of a conservative company has adopted a policy of never letting debt exceed 30% of total financing. The company will earn $10,000,000 but distribute 40% in dividends,

Sell new shares of stock to the general public : material information related to this issue of stock and what is the name associated with this

User Account

All Pages