Answer:
I) Days sales outstanding (DSO) for all customers? 48.7days
= (53*0.9)+(10*0.1) = 48.7 days
II) Net sales? $166.600
The Net sales = Gross sales - sales allowance
The discount amount due for the 10% discount customers = 2% of the 10% of 170 mn ==> 0.02 * 0.1 * 170 ===> 0.34 mn
∴ The Net sales = 17 - 0.34 mn = 16.66 mn
Amount paid by discount customers? $13.600
Explanation:
I. General Credit Policy Information
Credit stamps 2/10 Net 30
Days sales outstanding (DSO) for all customers 48.7days
DSO for customers who take the discount (10%) 10days
DSO for customers who forgo the discount (90%) 53days
II. Annual Credit Sales and Costs ($ millions)
Gross sales $170.000
Net sales? $166.600
Amount paid by discount customers $13.600
Amount paid by non discounted customers $153.000
Variable operating costs (82% of gross sales) $139.40
Bad debts $0.0
Credit evaluation & collection costs (10% of gross sales) $17.00
Absolute Advantage is the ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group.
Comparative Advantage is the ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity.
The producer that requires a smaller quantity inputs to produce a good is said to have an absolute advantage in producing that good. Comparative advantage refers to the ability of a party to produce a particular good or service at a lower opportunity cost than another
Using the diagram of the market for corn. If the price in this market is $2 per bushel, then there will be option A: a shortage of 8 thousand bushels.
<h3>What is the issue of the quantity demanded about?</h3>
Based on the image attached, 12 thousand bushels are being wanted at this price of $2 per bushel, while 4 thousand bushels are being delivered.
These figures are also shown in the image above. Now when you contrast the quantity given and sought at this pricing. The quantity supplied (12) lower than the quantity demanded (4). Or, to put it another way, the quantity that producers want to sell is lower than the quantity that customers want to purchase.
Therefore, Since Qd > Qs, we refer to this as an excess demand scenario or shortage.
Hence, 12 - 4 = 8
So there is a a shortage of 8 thousand bushels in quantity supplied.
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Answer:
Change in Net worth= $133.62
Explanation:
The two lease options require that the leasee ( the tenant) commit himself to pay a series of equal amount of rent installment at the different time period in the future.
These series of equal periodic cash flows occurring in the future are called annuities.
To have a meaningful comparison, the two annuities should be compared based on their present values. So we compute the present value of the two using the formula below:
Present Value (PV) =( A × (1- (1+r)^(-n))/r
Option 1:Current lease
PV = 500 × 1-(1+0.05)^(12)
= 500 × 8.863251636
= $4,431.62
Option 2: New Offer
This will be done in two steps:
PV of lease in year 3
PV =700 × (1-(1+0.05)^(-9))
= 700 × 7.107821676
=4,975.47
PV of lease in year 0
PV = FV × (1+r)^(-3)
=4,975.47 × 0.8638
=$4,298.00
My net worth would change by the amount of the difference between the two PV of the two annuities:
Difference in PV = $4,431.62-$4,298.00
Change in Net worth= $133.62
I’m not sure about the first one (my best guess is B.) but the second one is A.
