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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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21

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Apple's selling iphones to customers in africa, asia, and europe is an example of the globalization of ________.
shtirl [24]

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3 years ago
how much of a stock's $30 price is reflected in pvgo if it expects to earn $4 per share, has an expected dividend of $2.50, and
Kruka [31]

The amount of the stock price that will be reflected in the PVGO is $10

The value of an organization's potential future growth is symbolized by the acronym PVGO, or "present value of growth opportunities." It represents the potential value for the organization by reinvesting its earnings back into the business.

Expected Dividend payment (D) = $2.50

Total Earnings (E) = $4

Rate of return (ROR) = 20%

Step 1. Using no growth rate (GR), computing the stock price (SP)

Since the growth rate is not specified, 0% is taken as the default value.

The stock price (SP) = E/ROR

= $4 / 20%

Stock price = $20.

Step 2. Computing the SP reflected in PVGO.

So, total SP with no GR

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7 0
10 months ago
Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item were available for s
zmey [24]

Answer:

Please see attached solution

Explanation:

a. Cost of goods sold . Detailed explanation attached.

b. Ending inventory. Detailed explanation attached.

Note 1.

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Note 2

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Suppose that when the average college student's income is $10,000 per year, the annual quantity demanded of Patty's Pizza is 50
kvasek [131]

Answer:

Explanation:

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Pizza is a unit elastic normal good, because percentage change in income = % change in pizza quantity

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