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QveST [7]
4 years ago
9

Approximately 85% of the customers at hanson's furniture store purchase furniture using store credit. the store's average collec

tion period is 75 days. however, the store must pay their vendors within 30 days. what is the store's best option for maintaining their minimum cash balance?
Business
1 answer:
aev [14]4 years ago
7 0
<span>With a Net 30 payment policy, but an average collection period of 75 days with customers, Hanson's furniture store, should either reduce their store credit option, and encourage approximately 45% of their store credit customers to pay upon receipt, or shorten their operating cycle.</span>
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Item 3Item 3 Cutter Enterprises purchased equipment for $87,000 on January 1, 2018. The equipment is expected to have a five-yea
Rus_ich [418]

Answer:

$27,400 and $59,600

Explanation:

The computation of the depreciation expense and the book value using the sum of-the-years'-digits method is shown below:

Depreciation expense is

= (Purchase cost - residual value) × useful life ÷ sum of years

= ($87,000 - $4,800) × 5 years ÷ (5 + 4 + 3 + 2 + 1)

= $27,400

And, the book value is

= Purchase cost - depreciation expense

= $87,000 - $27,400

= $59,600

8 0
3 years ago
A mixed economy is one in which: a. ​decisions are based primarily on religion or custom. b. ​resources are both publicly and pr
SCORPION-xisa [38]

Answer:

d. ​all resources are privately owned and prices are used to coordinate economic activity.

Explanation:

  • A mixed economy is a system of the economy that is based on the aspects of the capitalism and the socialism and is the style that protect the private ownership and allows for the levels of the economic freedom.
  • In the case of the capital and also allows for the government intervene in the matter of the economy and in order to obtain social aims.
3 0
3 years ago
Helena is given a voucher that can be spent only on educational expenses. She has a budget constraint with educational expenses
ss7ja [257]

Answer: Helena will most likely end up spending some more money on everything else after receiving the voucher.

Explanation:

The budget constraint is used to shows the combinations of two goods which can be afforded by a consumer. A normal good is a good or product that when the income of the person rises,the demand for the product will also increase.

Based on the above information on the question, the correct answer is "Helena will most likely end up spending some more money on everything else after receiving the voucher".

This is because the voucher she was given can be spent only on educational expenses and her budget constraints comprises of educational expenses and everything else which is made up of normal goods. This means she'll still needs to get the normal goods later.

5 0
3 years ago
Over the last few decades, Americans have chosen to cook less at home and eat more at restaurants. This change in behavior, by i
Marrrta [24]

Answer:

increased measured GDP by the full value of the restaurant meals.

Explanation:

Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP calculated using the expenditure approach = Consumption spending + Investment spending + Government Spending + Net Export

Some items are not included in the calculation of GDP. Some of these items are :

1. Services rendered to ones self

2. Intermediate goods

3. Illegal activities

4. Transfer payment by government.

Households cooking at home is an example of services rendered to ones self and it is not included in the calculation of GDP.

While services rendered by resturants are included in the GDP through consumption spending by households.

So if families decide to eat more at resturants, GDP is increased by the full value of resutrant meals.

I hope my answer helps you

6 0
3 years ago
Khalida is sending an e-mail message to a client. before sending it, she wants to make sure that she has made her point in the f
erik [133]

i guess the correct answer is conciseness

Khalida is sending an e-mail message to a client. Before sending it, she wants to make sure that she has made her point in the fewest possible words.

Khalida is checking for conciseness.

4 0
3 years ago
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