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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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Answer:

The risk will be reduced by 0.109

Explanation:

Standard deviation for stock A = 49%

Standard deviation for stock B = 49%

Correlation = 0.2

Let's use the standard deviation of portfolio equation:

= \sqrt{w_A^2 \sigma _A^2 + w_B^2 \sigma _B^2 + 2w_A w_B \sigma _A \sigma _B * C}

Wherew_B = 100% - 56% = 44%

= \sqrt{(0.56^2 * 0.49^2) + (0.44^2 * 0.49^2) + (2*0.56*0.44*0.49*0.49)0.2}

= 0.381 = 38.1%

The risk will be reduced by:

(0.56*0.49)+(0.44*0.49)-0.381

= 0.109

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3 years ago
A newsvendor orders the quantity that maximizes expected profit for two products, X and Y. The critical ratio for both products
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Answer:

A. Product A, because it has less certain demand.

Explanation:

According to the statement, the product X (A) is the one with the highest proportion of standard deviation, that is, it has a more uncertain demand. Taking into account this condition, it is expected that the number of optimal products will be greater because it has an average and critical relationship. For this reason, it is expected that the news seller will lean towards the first product, since it will generate higher income as explained at the beginning.

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for a company making advanced technology, with highly specialized components, a customer divisional structure would be more effe
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The modular structure would be more effective for a company making technology with specialized components (false option)

Business modular structure is a term that refers to a type of structure in which a company is subdivided into specialized small units in some particular aspect of the production process.

This type of structuring is the best option for a company that makes specialized technological objects because each subdivision of the company can focus on different processes with greater specificity.

On the other hand, this structure allows the company to constantly improve itself because a major restructuring is not required when a failure is detected but can be quickly amended in the subdivision that presents problems.

Additionally, customer divisional structure is not the best option for this company because it is not necessary to segment the target audience since its products are highly specialized and are already aimed at a specific market segment.

Learn more in: brainly.com/question/11797076

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The data given below are from the accounting records of the Kuhn Corporation:
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The net cash provided by operating activities using the indirect method would be:  c. $50,000.

Net Cash From Operating Activities

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