Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1) Taylor Textbooks Inc. buys on terms of 2/15, net 50 days. It does not take discounts, and it typically pays on time, 50 days after the invoice date. Net purchases amount to 450,000 per year. On average, what is the dollar amount of costly trade credit (total credit - free credit) the firm receives during the year? (Assume a 365- day year, and note that purchases are net of discounts.
2) Van Doren housing expects to have sales this year of 15 million under its current credit policy. The present terms are net 30; the days sales outstanding (DSO) is 60 days; and the bad debt loss percentage is 5 percent. Also, Van Doren's cost of capital is 15 percent, and its variable costs total 60 percent of sales. Since Van Doren wants to improve its profitability, a proposal has been made to offer a 2 percent discount for payment within 10 days; that is, change the credit terms to 2/10, net 30. The consultants predict that sales would increase by 500,000 and that 50 percent of all customers would take the discount. The new DSO would be 30 days, and the bad debt loss percentage on all sales would fall to 4 percent.
a) What would be the cost to Van Doren of the discounts taken?b) What would be the incremental bad debt losses if the change were made?c) What would be the incremental cost of carrying receivables if the change were made?d) What are the incremental pre-tax profits from this proposal?
x ltd. went into liquidation. its assets realized rs.175000 excluding the amount realized by sale of securities held by
question 1 an interest only mortgage is made for 80000 at 10 percent interest for 10 years. the lender and borrower
Compute all cash flows, discount rates and determine if the project should be undertaken and show both the equations and the variables, and show the equations with the variables inserted into the equations.
What is bond rating and what is the current price of these bonds if required rate is 12 per cent per annum?
Before approving a loan to a small business, banker must be satisfied with the owner's character. Why is this? Do you agree or disagree? Explain your answer.
Discuss the efficient Market Hypothesis. Do you believe financial statement analysis can be performed in a way that provides significant advantage to an investor?
seven years ago after 15 years in public accounting stanley booker cpa resigned his position as manager of cost systems
time value of money is one of the most important concepts in the financial world. the principles of time value analysis
Calculate the weighted average cost of capital of Riphean plc and Silurian plc using the information provided and discuss two possible reasons why the cost of ordinary share capital differs between the two businesses
Calculate Liams savings ratio, debt ratio and debt-payments ratio and iIf Liam wishes to continue his education in 5 years, would he be better off investing in an RRSP or a TFSA?
Show the four retirement risks listed in the textbook in relationship to each of these plans. Provide examples with your explanation
Under Montana law, a written contract can be altered only in writing or by an executed oral agreement. Dr. Vranich argued that the contract could not be enforced because it was not in writing.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd