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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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White Tiger Electronics produces CD players using an automated assembly line process. The standard cost of CD players is ​$148 p
Stolb23 [73]

Answer:

A) a 23.5% decrease in materials

B) a 64% decrease in labor costs

C) a 29.1% decrease in overhead

Explanation:

White Tiger's multifactor productivity = $300 / $148 = 2.027

if we want to increase the multifactor productivity by 12%, it will = 2.27

since we will not change the sales price, we must determine the new total cost:

$300 / cost = 2.27

cost = $300 / 2.27 = $132.16 ≈ $132, which represents a $16 decrease

A) materials ⇒ $16/$68 = 23.5%

B) labor costs ⇒ $16/$25 = 64%

C) overhead ⇒ $16/$55 = 29.1%

4 0
3 years ago
Wattan Company reports beginning inventory of 11 units at $65 each. Every week for four weeks it purchases an additional 11 unit
larisa86 [58]

Solution:

Activity Units Units cost Cost of Goods Available

Beginning Inventory                11     $65.00      $715

1st week purchase                   11      $66.00     $726

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3rd week purchase                  11      $70.00     $770

4th week purchase                  11      $75.00     $825

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Cost of goods available for sale                       $3,773

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3 years ago
An economy has a Cobb-Douglas production function:Y=K? (LE) 1-?.The economy has a capital share of a half, a saving rate of 24 p
Nina [5.8K]

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3 years ago
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Answer:

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Explanation:

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