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Llana [10]
3 years ago
10

A firm is considering changing their credit terms. It is estimated that this change would result in sales increasing by $1,600,0

00. This in turn would cause inventory to increase by $125,000 , accounts receivable to increase by $100,000 , and accounts payable to increase by $90,000 . What is the firm's expected change in net working capital?
A) $315,000
B) $135,000
C) $225,000
D) $1,735,000
Business
1 answer:
Rasek [7]3 years ago
3 0

Answer:

D) $1,735,000

Explanation:

Change in Net Working capital = Increase/(decrease) in sales + Increase/(decrease) in inventory + Increase/(decrease) in receivable - Increase/(decrease) in payable  ; in which any value decrease is negative value or to be subtracted

Change in Net Working capital of this firm = sales increasing by $1,600,000 + inventory to increase by $125,000 + accounts receivable to increase by $100,000 - accounts payable to increase by $90,000  

= $1,735,000

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Yuki888 [10]

Answer:

Yes real people answer these questions. No, at least I don't get paid. (although that would be awesome!!!)

4 0
3 years ago
The product is shown without a decimal point. Where should the decimal point be placed?
mojhsa [17]

Answer:

Answer:B Place the decimal point after 2

Explanation:

All you have to do is multiply 3.12 times 4

7 0
2 years ago
Gekko, Inc. reported the following balances (after adjustment) at the end of 2008 and 2007.
nevsk [136]

Answer:

Correct answer is D, P3,900

Explanation:

Begging Allowance for doubtful account is P1,500 (96,000 - 94,500). Ending balance of Allowance for doubtful account is P3,000 (P108,000 -P105,000). We can now work back the provision for doubtful accounts that the company has made during 2008.

Beginning P1,500

Add:

Collection of written off accounts 800

Total P2,300

Less:

Written off 3,200

Total (P900)

Therefore, in order for the company to have an ending inventory of P3,000, They must have set up a provision for doubtful accounts in the amount of P3,900. Attached herewith is the T-account of allowance for doubtful accounts

6 0
3 years ago
Western Union is in the business of providing a medium for international money transfers. Through the services of Western Union,
tatiyna

Answer: core service

                                                 

Explanation: In simple words, core service refers to the service which are of highly value and importance to the user or provider or both.

These services are considered be essential for smooth operations of an economy or the organisation as the case may be.

In the given case, Western union has the business of transferring payments internationally. Hence we can conclude that they are providing the core service of their business.

5 0
4 years ago
Stock options A. allow you to pay people only​ $1 in salary. B. force CEOs to try and maximize the share price in the short run.
Ipatiy [6.2K]

Answer:

The answer is C.

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6 0
3 years ago
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