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kupik [55]
3 years ago
6

A firm is considering changing their credit terms. It is estimated that this change would result in sales increasing by $ 1 comm

a 400 comma 000 $1,400,000. This in turn would cause inventory to increase by $ 175 comma 000 $175,000​, accounts receivable to increase by $ 140 comma 000 $140,000​, and accounts payable to increase by $ 60 comma 000 $60,000. What is the​ firm's expected change in net working​ capital?
Business
2 answers:
ladessa [460]3 years ago
4 0

Answer:

The​ firm's expected change in net working​ capital: Net working​ capital increases by $255,000

Explanation:

Net working​ capital is calculated by using following formula:

Net working​ capital = Current assets - Current Liabilities

The inventory increases by $175,000​, accounts receivable increases by $140,000.

The Current assets increases by: $175,000 + $140,000 = $315,000

The accounts payable increases by $60,000, the Current Liabilities increases by $60,000

Net working​ capital increases by: $315,000 - $60,000 = $255,000

ANEK [815]3 years ago
4 0

Answer:

$255,000

Explanation:

As we Know Working capital is the the net or current assets and current liabilities.

Increase in Current Assets

Accounts receivable    $140,000

Inventories                   <u>$175,000</u>​

Total Increase in CA   $315,000

Increase in Current Liabilities

Accounts payable       $60,000

Increase in Working Capital =  Increase in Current Assets - Increase in Current Liabilities

Change in Working Capital = $315,000 - $60,000 = -$255,000

As current Liabilities increased more than the current assets, so the working capital will decrease by $255,000

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notsponge [240]

Answer:

1- c. Process.

2- d. Consistency.

Explanation:

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Personal brand management corresponds to a continuous process of action and positioning, so that the target audience that you want to reach through your brand, can get to know you, including the values ​​and the solution of the problems and benefits you have to offer.

This is a process that demands consistency of actions and posture, since the process of consolidating a personal brand is a continuous process that requires a lot of research, knowledge and analysis of trends and market, advertising, presence in the media most used by the public, demonstration of seriousness, quality, benefits, quick response to problems, and several other factors that gradually contribute so that through a consistent process the brand has value and is consolidated in the market.

8 0
2 years ago
Suppose you just won the state lottery, and you have a choice between receiving $3,500,000 today or a 20-year annuity of $250,00
xeze [42]

Answer: The correct answer is e). 3.67%

Explanation: An ordinary annuity is a series of payments made at the end of each period.

The formula for ordinary annuity is PV = PMT × ((1 - (1 + r) ^ -n)/ r)

Where; PMT = the periodic cash payment; r = the interest rate per period; n = the total number of periods and PV = present value.

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4 0
3 years ago
When choosing between two alternatives, such as replacing or not replacing the machine, do not include _______ costs in the anal
zysi [14]

Answer:

Head Office Cost Allocations

Explanation:

Usually Projects have Head Office costs that are allocated to them.

Head office costs allocated to projects will be the same for the choices of alternatives (replacing or not replacing the machine).

The Head office costs are a costs that is incurred at Head office as well.

Thus, Head Office Costs allocations are <em>irrelevant</em> and must not be included in the analysis.

4 0
3 years ago
Western Country Corporation made sales of $ 850 million during 2018. Of this​ amount, Western Country collected cash for $ 710 m
trapecia [35]

Answer:

We have to find Western Country Corporation's net income, and cash balance at the end of 2018.

The answers are:

Net Income = $200 million

Ending cash balance = $100 million

Explanation:

Net income is equal to sales revenue - cost of goods sold - other expenses

Net Income = $850 million - $255 million - 425 million

                   = $200 million

Ending cash balance is equal to beginning cash + cash receipts (inflows) - cash payments (outflows)

Ending cash balance = $85 million + $710 million - $400 million - $285 million

                                   = $110 million

5 0
2 years ago
Which of the following is most consistent with a relationship marketing strategy?
aleksklad [387]

Answer:

Option C  

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Relationship marketing refers to the strategy aimed at encouraging customer satisfaction, communication, and tight-term commitment. It is built to create strong customer relationships by presenting them with content that is specifically relevant to their desires and needs, and by encouraging open lines of communication.

Relationship marketing involves building and preserving interaction with customers over period via online marketing or other techniques which improve their chances of coming back to your company in the future. In particular, regular customers are essential because they are major sources of new clients and reviews and are also inclined to make repeated purchases.                            

4 0
3 years ago
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