Answer:
Explanation:
Using or applying a Net 30 payment terms, having an average collection time of 75 days with the customers, Hanson's furniture store, are to either reduce their store credit option, so as to encourage let's say within 45% of their store credit customers to be able to pay upon receipt, or reduce their operating period. Which is the best option for the store to maintain minimum cash balance.
Answer: Customer value marketing
Explanation:
Customer value marketing could be defined as measures taken by companies to improve services for the customers, the aim of these method of marketing is to retain the customer to always engage in the services offered by the company. Companies vary in how the carry out this marketing method, most use calls, mails, physical visit to clients residence or office or promotional offers which will motivate the costumer buy more or always prefer the companies services. Enlightened marketing calls is one of the measures taken to retain customers. This calls tell the customer of how the services of the firm is improving and other updates the customer needs to know.
Answer:
$2,000 decrease.
Explanation:
Two years ago, Aggre Inc. recognized the tax benefit of an uncertain tax position. Income tax expense in that year was reduced by $20,000 as a result. In addition, Aggre recorded a $5,000 tax liability for unrecognized benefits for the same tax position. During the current year, the uncertainty is resolved and a benefit of $22,000 is upheld. The amount by which current-year income tax expense affected by the resolution of the prior uncertainty is $2000 decrease.
The wealth effect refers to the fact that when the price falls, the real value of household wealth rises and consumption will also rise. The wealth effect causes movement along the demand and supply curve due to the value of money and items changing. The wealth effect is used to determine people spending more money when the value of their assets rise.
Answer:
Explanation:
Required:1.Calculate the expected cash collections for December. CREDIT SALES COLLECTIONS HISTORY20 % in the month of Sale (OCTOBER) 60 % in the First month after Sales (NOVEMBER) 18 % in the Second month after Sales (DECEMBER) 2 % Projection of Uncollectible Accounts receivable 100 %CASH COLLECTIONS FOR DECEMBER December cash sales................................................$83,000Collections on account:October sales: $400,000×18%.............................72,000November sales: $525,000×60%.........................315,000December sales: $600,000×20%.........................120,000Total cash collections..........................................$590,0002.Calculate the expected cash disbursements for merchandise purchases for December. CASH PAYMENTS HISTORY 30 % Paid in the month of purchases 70 % Paid in the First Month after purchased 100 % CASH PAYMENTS TO SUPPLIERSNovember purchases (accounts payable)..............$161,000December purchases: $280,000×30%.................84,000Total cash disbursements......................................$245,000
3.Prepare a cash budget for December. Indicate in the financing section any borrowing that will be needed during the month. Assume that any interest will not be paid until the following month. ASTHON COMPANY CASH BUDGET FOR MONTH ENDED 12-31-17 Cash Balance 12/1 40 000 Add: Cash Receipts Collections from customers 590 000 Total Cash Available 630 000 Less: Cash Disbursements Payments to suppliers 245 000 Selling & Administration Expenses 380 000 (Total - depreciation = 430 000 - 50 000) New Web Server 76 000 Dividends Paid 9 000 Total Cash Disbursements 710 000 Excess (deficiency) of cash available over disbursements (80 000) Financing: Borrowings 100 000 Repayments 0 Interest 0 Total financing 100 000 Ending cash balance 20 000
