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Simora [160]
3 years ago
10

Dimon Products' sales are expected to be $5 million this year, with 90% on credit and 10% for cash. Sales are expected to grow a

t a stable, steady rate of 10% annually in the future. Dimon's accounts receivable balance will remain constant at the current level, because the 10% cash sales can be used to support the 10% growth rate, other things held constant.a. True.b. False.
Business
1 answer:
spin [16.1K]3 years ago
4 0

Answer:

given statement is false

Explanation:

increase in sale = 10 %

so here total sale is

sale = $5 million + 10%

sale = $5.5 million

and

cash sale is

cash sale = $5.5 million × 90%

cash sale = $4.95 million

so

credit sale is here as

credit sale = $5.5 million - $4.95 million

credit sale = $0.55 million

so here credit sale 0.5 million increased to 0.55 million

so 10% increase

hence regardless increase in cash sale is increase

so given statement is false

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Some industries’ competition is much more intense than others. Retail grocery stores such as Kroger, Safeway, and Albertson’s in
Lemur [1.5K]

Answer:

rivalry among existing competitors

Explanation:

The Porters' 5 forces is used to analyse the competitiveness among firms in an industry.

Porter's 5 forces include :

  • Competition in the industry : the higher the number of companies in the industry, the lower the power an individual firm possesses. For example, if an industry increases it price, a consumer can easily shift to the consumption of substitutes
  •  Potential of new entrants into the industry : If there are low barriers to entry in an industry, firms in the industry experience greater competition  
  • Power of suppliers : the higher the number of suppliers in the industry, the higher the bargaining power of firms in the industry and the greater the power they possess
  •  Power of customers : the larger the number of customers, the greater the power firms possess
  • Threat of substitute product : if there are little or no substitutes for the goods produced by companies, the greater the power the firms possess
6 0
3 years ago
What is one major disadvantage of a capital formation strategy that focuses only on high risk investments
Troyanec [42]

Answer:

It increases the chance that the investment will lose all value.

Explanation:

If you go for a risky investment, it could increase the chance of it being a waste of time and money to sum it all up. But the answer you seek is, "It increases the chance that the investment will lose all value."

8 0
2 years ago
A potential CB project has the following cash flows: CF0 = -$500, CF1 = $300, CF2 = $200, CF3 = $150. WACC = 6%. Compute the fol
lisov135 [29]

Answer:

A. 2 years

B. 86.96

C. 16.46%

Explanation:

Payback period calculates the amount of time taken to recoup the initial investment made on a project.

The net present value substracts the present value of tax adjusted cash flows from the amount invested in the project.

Using the financial calculator to find the NPV:

Cash flow for year 0 = -500

Cash flow for year 1 = 300

Cash flow for year 2 = 200

Cash flow for year 3 = 150

Interest rate = 6%

NPV = $86.96

Internal rate of return is the discount rate that equates the tax adjusted cash flows from a project to the original amount invested.

Using the financial calculator to find the NPV:

Cash flow for year 0 = -500

Cash flow for year 1 = 300

Cash flow for year 2 = 200

Cash flow for year 3 = 150

Interest rate = 6%

IRR = 16.46%

4 0
3 years ago
You can save $1,000 per year for the next six years in an account earning 10 percent per year. How much will you have at the end
kicyunya [14]

Answer:

At the end of the sixth year, you will have:

= $8,487.17.

Explanation:

a) Data and Calculations:

Annual savings = $1,000

Interest rate per year = 10%

Period of savings = 6 years

First deposit = today

From an online financial calculator:

N (# of periods)  6

I/Y (Interest per year)  10

PV (Present Value)  0

PMT (Periodic Payment)  1000

 

Results

FV = $8,487.17

Sum of all periodic payments $6,000.00

Total Interest $2,487.17

8 0
3 years ago
Tara has started a new job and has been assigned to work on a team. She is anxious about getting along with her new team members
kap26 [50]
B. Avoid gossip
Getting along with team means being yourself and not gossiping with others.

C is not the answer because you want to make sure you are aware of complaints.
D is not the answer because when you give gifts, sometimes people can take advantage of you because they know you want to get along with them
A is not the answer because to get along and work together you have to share ideas
6 0
3 years ago
Read 2 more answers
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