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Dominik [7]
3 years ago
7

Ingraham Inc. currently has $320,000 in accounts receivable, and its days sales outstanding (DSO) is 63 days. It wants to reduce

its DSO to 25 days by pressuring more of its customers to pay their bills on time. If this policy is adopted, the company's average sales will fall by 20%. What will be the level of accounts receivable following the change
Business
1 answer:
TEA [102]3 years ago
7 0

Answer:

$44,186

Explanation:

Days sales outstanding can be expressed as the following financial ratio:

DSO ratio = accounts receivable / average sales per day, or.

DSO ratio = accounts receivable / (annual sales / 365 days)

Hence revised receivables / ( revised sales /365 ) will be our preferred formula for this scenario

Revised sales = 80% of current sales which is 0.8 x 320,000 = 256,000

daily sales = 256,000 / 365 = 701.3

revised receivables / 701.3 = 63 days as given in the question.

Revised receivables = 701.3 x 63 = $44,186

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Lower Equitorial and Upper Equitorial are the same except Lower Equitorial has a larger capital stock. Both countries undertake
loris [4]

Answer:

both countries would have temporary increases in their growth rates, but the increase would be smaller in Lower Equitorial.

Explanation:

Capital Stock represents the plant, equipment, infraestructure and other assets that help with production

So a larger capital stock implies more factories, more equipment and assets in favor of Upper Equitorial.

The capital increase the productivity. so the growth rate will be smaller in lower equitorial

8 0
3 years ago
. Research: Using reputable and recently published internet sources, research the
Angelina_Jolie [31]

Saving refers the method of accumulating one's capital for future use and this is done by either no spending part of one’s income or cutting down certain costs.

  • Money which are saved are either in cash at hand, in a deposit account or being invested in financial instruments such as Money market etc

  • According to Statistics from a reputable sources, for June 2021, the personal saving rate in the United States is 9.4 percent while in May, there was 10.3 percent in saving rate.

In conclusion, the factor that contributes to decrease in saving rate is the continuous rise of goods and services (Inflation) while income remain constant.

Learn more about Saving rate here

<em>brainly.com/question/6696594</em>

3 0
2 years ago
Which of the following characteristics distinguish a multinational corporation? a. Top management is expected to take a global p
Lemur [1.5K]

Answer: The correct answer is "d. All of these".

Explanation: All are characteristics of a multinational corporation. Since a multinational company is one that is not only established in its country of origin, but also established in other countries to carry out its commercial activities both for sale and purchase and production in the countries where they have been established.

a. Top management is expected to take a global perspective. - With a global perspective we mean that the top management must develop its strategies taking into account socioeconomic factors not only of the country where they belong but of the world, since in a multinational company it could affect externalities that occur in any part of the world.

b.The corporation is controlled by a single management authority. - Despite being a multinational company, there must be only one administrative authority that allows a clearer vision of the future of the company and establishes the objectives of long, medium and short term.

C. It is managed as an integrated worldwide business system. - Being a company located in many countries to be managed in an efficient way that maximizes benefits should be managed as an integrated worldwide business system that allows obtaining relevant data for decision making.

5 0
3 years ago
Suppose that a firm produces 10 units of output. Its Average Variable Cost (AVC) = $25, Average Fixed Cost (AFC) = $5, and Margi
Andreyy89

Answer:

Total Cost  = $300

Average Total Cost = $30  

correct option is a.) Total cost is $300

Explanation:

given data

produces output = 10 units

Marginal Cost = $30

Average Variable Cost = $25

Average Fixed Cost = $5

solution

first we get here total cost that is

Total Cost = Total Variable Cost + Total Fixed Cost    .................................1

so here Total Variable Cost = Average Variable Cost × Output    

Total Variable Cost = $25 ×  10

Total Variable Cost =  $250

and total fix cost is = Average Fixed Cost × Output

total fix cost = $5 × 10 =

total fix cost = $50

so Total Cost is here

Total Cost  = $250 + $50

Total Cost  = $300

A) is correct

and

Average Total Cost will be

Average Total Cost = \frac{total\ cost}{out\ put}    ...................2

Average Total Cost = \frac{300}{10} = $30

Average Total Cost = $30  

3 0
3 years ago
A company has beginning inventory of 10 units at a cost of $10 each on February 1. On February 3, it purchases 20 units at $12 e
Gre4nikov [31]

Answer:

b) $124

Explanation:

FIFO means first in, first out. Under this principle, goods that were purchased or produced earlier will be the first ones on sale.

The value of the goods sold in our case will be as follows.

The first ten items   @ $10: 10X10 =$100

Two items to make   [email protected] $12: 2x12=$24

 

Total cost: $100+$24= $124

7 0
3 years ago
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