In this case, the shifter of demand is future expectations. Since consumer now know that in the future the game will be cheaper, they shift their demand for the product into the future.
Answer:
The Beverage International's receivables turnover ratio is = 16,14
Explanation:
The accounting receivable turnover formula is :
Net credit sales / Average Accounts Receivable
So Net credit sales = $468,000
And Average Accounts Receivable = ($24,000 + $34,000)/2 = $29.000,00
The receivables turnover ratio is = $468,000 / $29.000,00 = 16,14
Project x
Year ----- Cash flow ----- Net Invested cash
0 ----------- -68,000
1 24,000 -44,000
2 24,000 -20,000
3 24,000 0
Payback period = 2+ 20,000/24,000 = 2+0.83 = 2.83 years.
The final multiple choice is correct.
