Answer:
Part a.
Accounts receivable turnover ratio is the shows how many times accounts receivable can be converted in to cash during the period. The formula for calculating the same is given below.
Accounts receivable turnover ratio = Net credit sales / Average accounts receivable
The following table shows the accounts receivable turnover ratio of MCB and ABI:
Particulars MCB ABI
Net sales $5,170 $39,046
Average Accounts Receivable $517 $2,606
Accounts Receivable Turnover rate 10 14.98
Part b.
Day's sale outstanding shows the average number of days taken to collect the accounts receivable. The formula for calculating the same is given below.
Day's sale outstanding = Accounts receivable / Total credit sales × 365
The following table shows the days sale outstanding of MCB and ABI:
Particulars MCB ABI
Net sales $5,170 $39,046
Average Accounts Receivable $517 $2,606
Day's sale outstanding 36.5 24.36
The correct question is:
The discounted payback period of a project will decrease whenever the:
a. discount rate applied to the project is increased.
b. initial cash outlay of the project is increased.
c. number of cash inflows is increased.
d. amount of each cash inflow is increased.
e. costs of the fixed assets utilized in the project increase
Answer:
d. amount of each cash inflow is increased.
Explanation:
Discounted cash flow of a project is an analysis that considers the time value of money, future cash inflows re calculated as a discount of present value.
Discounted payback period is how long it will take for future cash flows to meet a certain amount.
For example if $100 is estimated to be $200 in 10 months at future inflows of $10 per month (that is $10*10 months= $100 profit)
If the inflow is now increased to $20 it will reduce repayment time from 10 months to 5 months (that is $20* 5months = $100 profit)
The failure to pay on a mortgage is default. Basically, the default is the failure to meet legal responsibilities in a contract, including the failure to pay back a loan. A mortgage is considered a default when a payment is late for 30 days or more.
An increase in money supply causes the real interest rate to remain unchanged and the price level to rise in long-run general equilibrium.
Unlike partial equilibrium analysis, which only examines individual markets, general equilibrium analysis examines the entire economy. In an economy with several markets operating concurrently, general equilibrium illustrates how supply and demand interact and tend toward balance.
By attempting to demonstrate that the interaction of supply and demand will lead to an overall general equilibrium, general equilibrium theory seeks to explain the behavior of supply, demand, and prices in a large economy with several or many interacting markets.
Learn more about equilibrium here
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Answer: False
Explanation: In simple words, brands can be defined as those tags which attracts the customers and helps a firm to maintain a stable customer base. Brands indulge customers emotionally or economically to buy the product due to quality reasons.
However brand cannot give a a rational customer absolute knowledge about the price of the product as the firm with even a strong brand image have to do promotional and advertising activities due to heavy competition in the market.
A positive brand image do help the firm to get the initial attention of the customer but still they have to inform customs about why they are charging more than others.
