Answer: 451759.29
Explanation:
To solve the question, we need to calculate the current sales. This will be calculated by using the formula:
DSO = (Account receivable × 365) / Sales
54 = 820000 × 365 / Sales
Sales = 820000 × 365 / 54
Sales = 5542593
After the new policy, the expected sales will be:
= 5542593 × (1 - 15%)
= 5542593 × (1 - 0.15)
= 5542593 × 0.85
= 4711204.5
The level of accounts receivable following the change will be:
DSO = (Account receivable × 365) / Sales
35 = Account receivable × 365 / 4711204.5
Account receivable = 35 × 4711204.5 / 365
Account receivable = 451759.29
Yes, she can make the purchase and have money left over.
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Answer:
increase spending
Explanation:
In order to try to rebound the economy the FED has three options:
- Carry on an expansionary monetary policy which increases the money supply and decreases interest rates, which should increase aggregate demand.
- Increase government spending, which should increase total aggregate demand.
- Decrease taxes, which would increase the amount of disposable income held by consumers and businesses, which should also increase aggregate demand.
The problem is that nothing is free; an expansionary monetary policy increase the inflation rate, an increase in government spending and a decrease in taxes increases the government deficit and national debt (and the interests paid on them).
Working hard at a job that pays well, not mine obviously.