What is the amount of the company accounts receivable

Assignment Help Financial Management
Reference no: EM131552311

Essence of Skunk Fragrances, Ltd., sells 6,200 units of its perfume collection each year at a price per unit of $392. All sales are on credit with terms of 1/10, net 50. The discount is taken by 35 percent of the customers.

What is the amount of the company’s accounts receivable? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Average receivables            $

In reaction to sales by its main competitor, Sewage Spray, Essence of Skunk is considering a change in its credit policy to terms of 3/10, net 50 to preserve its market share. Will this change in policy increase or decrease accounts receivable?

(Click to select) Increase Decrease

Reference no: EM131552311

Questions Cloud

What is cost of equity capital and wacc : What is BCCI’s cost of equity capital? What is its WACC?
Calculate change on net worth of the same bank : Calculate change on net worth of the same bank with .25% change in interest rate if the base rate was 6%
Your mortgage be considered conforming or non-conforming : Would your mortgage be considered conforming or non-conforming? Do you think you’ll be required to obtain private mortgage insurance? Why?
Finance manager work to ensure proper financial controls : With what players in an organization does the finance manager work to ensure proper financial controls are in place?
What is the amount of the company accounts receivable : What is the amount of the company’s accounts receivable? Will this change in policy increase or decrease accounts receivable?
Financial analyst for large metropolitan area transportation : As a financial analyst for a large metropolitan area's transportation authority, What capital budgeting technique should you use to analyze this project?
About the cost of common equity and wacc : What is its cost of common equity and its WACC?
What is after-tax cost of debt : If its marginal the rate is 40%, what is Holmes's after-tax cost of dept?
The importance of financial planning in our daily real life : What is arbitrage? Why do arbitrage opportunities vanish quickly? Explain the importance of financial planning in our daily real life.( in essay format)

Reviews

Write a Review

Financial Management Questions & Answers

  About the present value

Present value: Jack Robbins is saving for a new car. He needs to have $ 21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target?

  Mature manufacturing firm

Antiques R Us is mature manufacturing firm. The company just paid a $15 dividend, but management expects to reduce payout by 10 percent per year indefinitely.

  Evaluate optimal strategy of hedging

FHC Inc., a U.S. corporation, has an account payable due in 90 days. Use the following information to evaluate the optimal strategy of hedging its transactional exposure - MMHC Inc., a U.S. corporation, has an Euro-denominated account receivable i..

  What is present value of the second option

You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. What is the present value of the second option?

  About the valuation of a constant growth stock

If its required return is 14%, what is the stock's expected price 2 years from today?

  What is the standard deviation of these returns

The common stock of Air United had annual returns of 13.7 percent, 4.8 percent, -6.7 percent, and 27.9 percent over the last four years, respectively. What is the standard deviation of these returns?

  What is its cash coverage ratio

Cash Coverage, Inc. had net sales of $300,000 last year, and increased its retained earnings by $10,000 for the year after paying a dividend of $2 per share on 10,000 outstanding shares. The tax rate for the company is 40%. The company had cost of go..

  Graphic depiction of accounting break-even analysis

In a graphic depiction of accounting break-even analysis, the greater the slope of the total cost line, the higher the: level of fixed costs. level of total revenue. number of units sold. percentage of variable costs to sales.

  The cash rebate or dealer incentive financing

Sylvia wants to purchase a 2011 Dodge Challenger for a negotiated price of $38,770 inclusive of all costs (options, taxes, delivery charges, etc.). Sylvia will be making a down payment of $8,000. What are the respective monthly payments if she takes ..

  Required return on the project

The tax rate is 40 percent and the required return on the project is 8 percent. What change in NWC occurs at the end of year 1?

  What are the incremental free cash flows in the second year

Cathy Foods will release new range of candies which contain antioxidants. New equipment to manufacture the candy will cost 2 million, which will be depreciated by straight line depreciation over four years. In addition, there will be 5 million spent ..

  Contracts to retool other companies production lines

Tool & Dye bids for contracts to retool other companies’ production lines. Why are orders bunched like this and how can Hyperion fix this?

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