User Account

All Pages

Will it be fair to relax the credit policy

Assignment Help Finance Basics
Reference no: EM131083119

Annual sales of Modern company is 16000 units @ Rs. 50 per unit. Its variable cost is Rs. 30 per unit and fixed cost Rs. 160000 per year. The company is considering to relax its credit policy. This will increase its sales by 20% and average collection period will increase from 30 days to 45 days. Bad debts are expected at 3% on increase in sales and collection charges will increase by Rs. 20000. If required rate of return on investments is 15% after tax and rate of tax is 40%. Will it be fair to relax the credit policy?

Reference no: EM131083119

Questions Cloud

Analysis on the data using matlab tools : ELECENG 7015 - Adaptive Signal Processing, 2016. To perform preliminary "standard" signal analysis on the data using matlab tools in order to understand spectral and correlation properties of the data, and to validate its suitability for adaptive f..
Determine account balances of the t accounts : Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance. Prepare an unadjusted trial balance for Cantwell Architects, as of July 31, 2014.
What is the standard deviation of these returns : Kelly decided to accept the risk and purchased a high growth stock. Her returns for the past five years are 48 percent, 39 percent, -56 percent, 61 percent, and -24 percent. What is the standard deviation of these returns?
Benefits of international trade for the uk economy : Read the following and answer the questions below.In recent years, there has been an increase in international trade which has led toa rise in the volume of imported goods into the UK which has impacted on nationalincome.
Will it be fair to relax the credit policy : Bad debts are expected at 3% on increase in sales and collection charges will increase by Rs. 20000. If required rate of return on investments is 15% after tax and rate of tax is 40%. Will it be fair to relax the credit policy?
A risk management model for mitigating risks : Review the article Calming the Data Storm: A Risk Management Model for Mitigating Risks and then answer the questions that follow. Your responses should be thorough and Include at least three references from outside sources (other than your textbo..
Compute the labor price variance and indicate : Compute the labor price variance and indicate whether it is favorable (F) or unfavorable (U). Compute the labor usage variance and indicate whether it is favorable (F) or unfavorable (U).
What does mean to have reliability within realm of research : Leedy and Ormrod (2013) briefly discuss ethical implications for research participants. What might be a common ethical consideration for research projects in the fire service?
The limitations of the study in the research report : Why is it necessary to specify the limitations of the study in the research report? What aspects of a class research project would be stressed by you in the written report and in the oral presentation?

Reviews

Write a Review

Finance Basics Questions & Answers

  On january 1 2013 gibson corporation entered into a

on january 1 2013 gibson corporation entered into a four-year operating lease. the payments were as follows. 21000 in

  Calculate some of the key profitability, activity

Calculate some of the key profitability, activity, leverage, liquidity, and market ratios for Best buy and circuit city.

  What is the market value of l

The other way around: you invest $60 into stocks of L. By combining a stock purchase of U and deposit/loan, provide a optional strategy that provides the same profits.

  Discuss the various types of bonds and how they are used to

discuss the various types of bonds and how they are used to raise funds by public and private institutions and why is

  How much is the security worth today

Suppose a security will pay $1,000 three years from now. If the appropriate interest rate is 4.00% compounded annually, how much is the security worth today?

  A merger which is driven by the potentially large reduction

a merger that is driven by the potentially large reduction in the staffing of overlapping functions and the integration

  Explain market forces that will impact the financial plan

Explain two economic and market forces that will impact the financial plan of this company. Create an outline for the essay.

  Determine irr for the project using a financial calculator

Determine the (Internal Rate of Return) IRR for the project using a financial calculator.

  Compound interest pays interest for each time period

What is the residual income for a firm with $1 million in total capital, $300,000 in net income, and a 20% cost of capital - What is the residual income for a firm with $1 million in total capital, $300,000 in net income, and a 20% cost of capital?

  Assume that you have 100000 invested in a stock whose beta

assume that you have 100000 invested in a stock whose beta is .85 200000 invested in a stock whose beta is 1.05 and

  Create a function that returns the present value of a sum

Create a function that returns the present value of a sum. The function should take two parameters: Number of periods and Interest Rate.

  Two doors down inc has weekly credit sales or 44500 and

two doors down inc. has weekly credit sales or 44500 and the average collection period is 25 days. what is tdds

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd