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3 years ago

Garcia Industries has sales of $167,500 and accounts receivable of $18,500, and it gives its customers 25 days to pay.

Business

1 answer:

miv72 [106K]3 years ago

6 0

Answer:

c. $488.77

Explanation:

Step 1: Calculate Accounts Receivable for Industry DSO

The accounts receivable for industry DSO is calculated as below:

Accounts Receivable (Industry DSO) = Sales Value*Industry Average DSO/Total Days in the Year

Using the values provided in the question in the above formula, we get,

Accounts Receivable (Industry DSO) = 167,500*27/365 = $12,390.41

_____

Step 2: Calculate Value of Freed-Up Cash

The value of freed-up cash is determined as below:

Freed-Up Cash = Value of Accounts Receivable at Company's DSO - Value of Accounts Receivable for Industry Average = 18,500 - 12,390.41 = $6,109.59

_____

Step 3: Calculate Effect of Net Income

The effect on net income is calculated as below:

Effect on Net Income = Freed-Up Cash*Rate of Return = 6,109.59*8% = $488.77

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2 years ago

When a country's economy is producing at a level that exceeds its potential gdp, the standardized employment deficit will show a

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Answer:

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Explanation:

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3 years ago

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3 years ago

Shawn puts money into an account. One year later he sees that he has 6 percent more dollars and that his money will buy 5 percen

Paladinen [302]

Answer:

d. The nominal interest rate was 6 percent and the inflation rate was 1 percent.

Explanation:

Nominal interest rate = real interest rate + inflation rate

Real interest rate is nominal interest rate less inflation rate. The real interest rate represents the real purchasing power of interest paid.

If the interest rate buys 5 percent more goods ,it means that the purchasing power and the real interest rate is 5 percent.

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I hope my answer helps you.

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3 years ago

Transaction exposure manifests itself when MNCs engage in each of the following, except: Group of answer choices Forward market.

kondor19780726 [428]

Answer:

Forward market.

Explanation:

Transaction exposure represent the uncertatinity level where the business is involved in the trade that to be done on the international level. It is the risk where the currency exchange rate fluctuates when the financial obligation is undertaken by the firm

So as per the given situation, it engaged in all the things except the forward market because in all other things it is engaged by the MNC

Therefore the first option is correct

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2 years ago