1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Kwan wants to open a new business in his own country, Singapore. He has decided on a form of licensing that will provide him wit
Sidana [21]

Answer:

A

Explanation:

Direct sales

3 0
3 years ago
A(n) ______ is defined as trying to earn a profit by providing goods and services that satisfy people's needs and wants.
Tema [17]

Every individual or business wants to make profit this is done by providing goods and services that satisfy people's needs and wants.

<h3>What is a business?</h3>

A business is an organization that aims at making a profit by providing goods and services that are desired by individuals also known as customers.

Business meets a need and gets profit in return.

Therefore, A Business is defined as trying to earn a profit by providing goods and services that satisfy people's needs and wants.

learn more on business here

brainly.com/question/24553900

3 0
2 years ago
In capital budgeting decisions, corporate risk will be of least interest to: a. The local community. b. Employees. c. Institutio
Neko [114]

Answer:

c. Institutional investors.

Explanation:

Institutional investors -

<u>It is an entity that pools the money in order to purchase securities , the real property and other investment assets or loans .</u>

It includes banks , companies , insurance , pensions , hedge funds , mutual funds , endowments .

Hence , for the capital budgeting decisions , the corporate risk is the minimum in this case .

6 0
3 years ago
A(n) _______ list can help you gain an understanding of contacts who met a certain criteria on a particular date. Then you can l
Klio2033 [76]

Answer: a. Static

Explanation:

A static list is a list of contacts you've gathered over a period of time for a purpose.

4 0
3 years ago
Both of the following companies are merchandisers that began operations this year. X Company Y Company Cash from operating activ
stellarik [79]

Answer:

Company X

Explanation:

It seems company X made more purchase for PPE

<u>Investing activities refers to the purchase of long-term assets or investment</u>

Considering Company X used 200,000 cash for investing activities

while Company Y used 100,000 cash for investment activities.

We can assume Company X made more purchase of PPE

However, company Y could made purchase without cash (issued of shares, or signing a note) Which will not use cash.

6 0
3 years ago
Other questions:
  • Journalize the following transactions using the allowance method of accounting for uncollectible receivables.April 1 Sold mercha
    10·1 answer
  • ____________ is best defined as a statistical procedure, which involves quantitatively pooling the data from a group of independ
    15·1 answer
  • The term? "market" in economics refers to
    13·1 answer
  • Identify the mission and strategy of your automobile repair garage. What are the manifestations of the 10 OM decisions at the ga
    9·1 answer
  • What environmental advantages would there be in having fewer transactions?
    13·1 answer
  • determine and describe ten best practices for managers competing in the global environment, challenged with diversity, global ec
    11·1 answer
  • Expain what is debt in a 70 word paragraph
    13·2 answers
  • an architectural design company just won the bid for a huge project. to ensure that everyone does the right work at the right ti
    12·1 answer
  • What is the highest level of message AWARENESS that can be reached with the UNIVERSITY STUDENT based on a selection(s) of POSITI
    15·1 answer
  • What term is used to describe the method that allows coplink to access many different databases of law enforcement agencies with
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!