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oee [108]
3 years ago
9

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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tankabanditka [31]

Answer:

Explanation:

In this specific scenario, the best thing for the agent to do would be to bring the information to the attention of the firm's supervisory principal named to handle such matters in a Supervisory Procedures Manual. That is because inside information or insider trading is illegal and even though it does not need to be reported to the state securities Administrator, it should still be handled by the firm's supervisory principal in order for it to be handled correctly so that the firm does not get into trouble.

3 0
3 years ago
The following table contains statements that provide some analysis of policies that address smoking, lung cancer, and cigarette
liubo4ka [24]

Answer:

Positive Statements: 1st & 2nd ; Normative Statements: 3rd & 4th

Explanation:

Positive Economics is <u>objective</u> & <u>facts</u> based <u>actual</u> economic issue description , explaining verifiable phenomenas (causal relationships).

Normative Economics is <u>subjective</u> & opinion based conclusive <u>solutions</u> to economic issues, including '<u>ought to be</u>' unverifiable suggestions.

1. Lung cancer kills millions of people each year: reflects actual objective verifiable fact about an economic (health) issue.

2. Too many people smoke: denotes another actual objective variable fact connected to (potential cause of) the above economic (health) issue.

So , these two are Positive Statements.

3. If the government were to increase taxes on cigarettes, fewer people would smoke : Is subjective opinion based probable solution to the above economic (health) issue.

4. The government should increase taxes on cigarettes : Is an 'ought to' suggestion for an economic participant (govt) to solve the above economic (health) issue.

So , these two are Normative Statements

5 0
3 years ago
Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is
Karo-lina-s [1.5K]

Answer:

The answer is E. $24,000

Explanation:

Straight line depreciation method equals

Cost of asset - salvage value / number of years.

Cost of asset is $135,000

Salvage value is $15,000

Number of years is 5 years

$135,000 - $15,000/5 years

$120,000/5 years

=$24,000

Straight line method of depreciation has equal amount all through the year.

The first year through it end life.

Therefore, machines' first year depreciation under the straight-line method is $24,000

6 0
3 years ago
Before opening his own business, Tanaka was writing a
Len [333]

This document is known as Business plan. A business plan stands as a formal written document including the objectives of a business, the strategies for attaining those goals, and the time frame for the attainment of the goals.

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

Business exists as the activity of creating one's living or earning money by producing or buying and selling products. It stands also for "any activity or enterprise joined into for profit.".

A business exists described as an organization or enterprising entity encountered in commercial, industrial, or professional activities. Businesses can be for-profit entities or non-profit organizations. Business classes range from limited liability businesses to sole proprietorships, corporations, and partnerships.

A business plan stands as a formal written document including the objectives of a business, the strategies for attaining those goals, and the time frame for the attainment of the goals. Good business plans should contain an executive resume and sections on products and services, marketing strategy and research, financial planning, and a budget.

A business plan stands as a very significant and strategic tool for entrepreneurs. A good business plan not only allows entrepreneurs to focus on the specific actions essential for them to create business concepts succeed, but it also enables them to achieve short-term and long-term purposes.

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4 0
2 years ago
Garza company had sales of $149,000, sales discounts of $2,225 and sales returns of $3,525. Garza's net sales equals
nika2105 [10]

Answer:

Garza's net sales equals $143250.

Explanation:

Net sales = gross sales - sales return - sales discount

                = $149,000 - $3,525 - $2,225

                = $143250

Therefore, Garza's net sales equals $143250.

4 0
3 years ago
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