The gross profit rate is 30 percent and the rate of return

Assignment Help Finance Basics
Reference no: EM13574340

Sales Campaign. Jones Corporation is considering a sales campaign in which it will offer credit terms of 3/15, net/80. The finance manager expects that the collection period will increase from 90 days to 110 days. Information before and during the proposed campaign follows:


Percentage of Sales

before Campaign

Percentage of Sales

during Campaign

Cash sales

20

10

Payment from



1-15

35

25

16-120

45

65

The sales campaign is expected to raise sales from $5 million to $6 million. The gross profit rate is 30 percent and the rate of return is 16 percent. Sales discounts are given on cash sales. Should the sales campaign be initiated?

Reference no: EM13574340

Questions Cloud

American medical instruments produces a variety of medical : american medical instruments produces a variety of medical products at its plant in minneapolis. the company has sales
It anticipates that 30 percent of its customers will take : discount policy. stevens company presents the following informationcurrent annual credit sales24000000collection
Ken invested 200000 for a 30 interest in a partnership in : ken invested 200000 for a 30 interest in a partnership in which he is a material participant. the partnership borrowed
Explain why net operating working capital is included in a : explain why net operating working capital is included in a capital budgeting analysis and how it is recovered at the
The gross profit rate is 30 percent and the rate of return : sales campaign. jones corporation is considering a sales campaign in which it will offer credit terms of 315 net80.
Calculate sigmas and brians 2012 taxable income and total : several years ago brian formed sigma corporation a retail company that does not qualify for the u.s. production
Calculate reorder level minimum stock level maximum stock : calculate reorder level minimum stock level maximum stock level and average stock level from the following
Gross profit approximates 12 percent of sales the rate of : credit policy. wilder corporation is considering granting credit to currently limited customers or no-credit
Bob and april would qualify as emas dependents except that : emma doyle age 55 is employed as a corporate attorney. for calendar year 2013 she had agi of 100000 and paid he

Reviews

Write a Review

Finance Basics Questions & Answers

  Why is liquidity important in analysis of financial

why is liquidity important in analysis of financial statements? explain its importance from the viewpoint of more than

  The additional educational years or the time value of money

The additional educational years or the time value of money.

  Assume that it is july 1 2010 and you just bought your

assume that it is july 1 2010 and you just bought your dream car a 2011 porsche that cost 83000. you paid 8000 down and

  You are offered two bonds a one-year us treasury bond with

you are offered two bonds a one-year u.s. treasury bond with a yield to maturity of 9 and a one-year u.s treasury bill

  Calculate the total cost in usd

Without a forward contract, what is the dollar-cost of the shipment if the spot exchange rate at the time of purchase is $0.75?

  Calculate the depreciation expense

Calculate the depreciation expense and how to evaluate depreciation expense

  How useful and valid is it to argue that countries

How useful and valid is it to argue that countries can be classified by the different managerial and organisational value they exhibit.

  What is its forecasted dividend payout ratio

Portland Plastics Inc. has the following data. If it follows the residual dividend model, what is its forecasted dividend payout ratio?

  What you see to be the most important economic policy

From your knowledge of current events, discuss what you see to be the most important economic policy of today. State your rationale for choosing this economic policy.

  What would be the maximum purchase price acceptable to the

the ski pro corporation which produces and sells to wholesalers a highly successful line of water skis has decided to

  How much higher or lower is the effective annual rate

Midwest Bank also offers to lend you the $50,000, but it will charge an annual rate of 7.0%, with no interest due until the end of the year. How much higher or lower is the effective annual rate charged by Midwest versus the rate charged by Rivers..

  Write a paper in no more than 1750 words that focuses on

write a paper in no more than 1750 words that focuses on the analysis of different alternatives available to guillermo.

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