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Scrat [10]
3 years ago
14

A large manufacturing firm has been selling on a 3/10, net 30 basis. The firm changes its credit terms to 2/20, net 90. What cha

nge might be expected on the balance sheets of its customers?
A. Decreased receivables and increased bank loans
B. Increased receivables and increased bank loans
C. Increased payables and decreased bank loans
D. Increased payables and increased bank loan
Business
1 answer:
kifflom [539]3 years ago
3 0

Answer: Increased payables and decreased bank loans

Explanation:

It should be noted that 3/10, net 30 simply means when customer pays in 10 days, such person will get a 3% discount, if not the person will have to pay in full within the 30 days.

On the other hand, 2/20, net 90 means that when customer pays in 20 days, such person will get a 2% discount, if not the person will have to pay in full within the 90 days.

Therefore, the change that this will lead to on the balance sheets of its customers will be an increased payables as there'll be more time to make payment for the goods and decreased bank loans.

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Craig Manufacturing Company operates its three production departments within a single facility. Each department produces its own
Rus_ich [418]

Answer:

Craig Manufacturing Company operates its three production departments within a single facility. Each department produces its own products and maintains its own production equipment. Although they share a common facility, each department is overseen by a separate supervisor. Which one of the following costs is a direct cost of each department?

Production supervisor salary

Explanation:

Production supervisor salary serves as the overhead cost that is attribute to the production in the manufacturing company, it is direct cost for each department since every department has a supervisor

7 0
2 years ago
Based on the following information, determine the location quotient for KuDu City and whether this city has a competitive advant
Nata [24]

Answer: 7.24

Explanation:

The location quotient for this question can be calculated by;

=  ( Employment in Amusements and Recreation in KuDu City / Total Employment in KuDu City) / (Employment in Amusements and Recreation (nationally) / Total Employment (nationally))

= (54,446/578,477) / (1,381,377/ 106,201,232)

= 7.2359

= 7.24

5 0
3 years ago
The Capital Purchase Program carried out under TARP represented an attempt by the federal government to increase the capital of
4vir4ik [10]

Answer:

A. To keep banks with falling asset values solvent.

Explanation:

When a bank is failing it will result in loss of funds not only for the bank but also for customers that have accounts in these banks.

If a bank eventually closes operations as a result of insolvency, they will not be able to pay off the customers. That is where the deposit insurance comes in to settle customers.

The government will have to spend a lot of money reimbursing customers their money.

To avoid this the federal government ensures the capital of banks is maintained to keep banks with falling asset values solvent.

7 0
3 years ago
Lawrence​ Industries' most recent annual dividend was ​$1.80 per share ​(D0equals$ 1.80​), and the​ firm's required return is 11
Dima020 [189]

Answer:

The price of the stock today is $34.13

Explanation:

The price of the stock that grows at two different growth rates can be calculated using the two stage growth model of DDM. The DDM requires to discount back the dividends to calculate the price of the share today.

The price of the stock today is,

P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [(Dn * (1+g) / (r - g)) / (1+r)^n]

P0 = 1.8 * (1+0.08) / (1+0.11)   +  1.8 * (1+0.08)^2 / (1+0.11)^2  +  

1.8 * (1+0.08)^3 / (1+0.11)^3  +  [ (1.8 * (1+0.08)^3 *(1+0.05) / (0.11-0.05)) / (1+0.11)^3]

P0 = $34.127 rounded off to $34.13

8 0
3 years ago
Assets Liabilities and Net Worth
KiRa [710]

Answer:

The correct answer is $30 billions.

Explanation:

The checkable deposits are given as $140 billions.

The total reserves are $51 billions.

The required reserve rate is 30%.

The required reserves will be

=30% of $140 billions

=0.3 \times 140

=$42 billions

The excess reserves will be

=total reserves-required reserves

=$51-$42

=$9 billions

Maximum expansion by lending will be

=\frac{excess reserves}{required \ reserve\ rate}

=\frac{9}{0.3}

=$30 billions

So, the money supply can be expanded by a maximum amount of $30 billions.

5 0
2 years ago
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