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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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Which of the following types of insurance allows individuals to keep a former employer's group coverage for a set period of time
nordsb [41]

Answer:

group health insurance

6 0
3 years ago
The Truth-in-Lending Act gives debtors the right to rescind certain transactions for a period of ______ business days from the d
inysia [295]

Answer:

three

Explanation:

The Truth-in-Lending Act (TILA) applies to home loans. It requires lenders to disclose all costs related to a home loan, provides rescission rights for some transactions, and impose restrictions on home equity credits. But the TILA cannot set the interest rates or other fees charged by the lender, it only requires the lender to disclose the complete information, e.g. APR, monthly payments and amount financed.

3 0
3 years ago
The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports
blagie [28]

Answer:

The correct option is b. $8,100

Explanation:

Since the question was asked about the allocation of maintenance department expense to assembly and the maintenance department expense is based on the square footage.

So, the following equation should be used which is shown below:

= Maintenance department expense × assembly square foot space ÷ total sum of square foot space

where,

Maintenance department expense is $18,000

Assembly square footage is 2,700

And, the total sum of square foot space equals to

=  Fabrication square foot space + assembly square foot space

= 3,300 + 2,700

= 6,000

Now, put these values on the above equation.

So, the value would be equals to

= $18,000 × 2,700 ÷ 6,000

= $18,000 × 0.45

= $8,100

The other cost is irrelevant. Thus, it is ignored while computation.

Hence, the amount of Maintenance department expense to be allocated to Assembly is $8,100

Therefore, the correct option is b. $8,100

7 0
3 years ago
A 4-year project has an annual operating cash flow of $58,500. At the beginning of the project, $4,950 in net working capital wa
valina [46]

Answer:

Net   Cash flow   in year 4   $46,140<u> </u>

Explanation:

Cash flow represent the amount of cash revenue less out of pocket cash expenditures. Non-cash related items are not included.

Year    4                                               cash flow     ;

                                                                     $

Operating cash flow                               $58,500

Working capital recouped                     4,950

Scrap value                                            6,090    

Tax payable (40%*58500)                      <u>(23400 )</u>

  Net   Cash flow                            <u>      46,140 </u>

3 0
3 years ago
Culver Company has budgeted the following unit sales: 2022 2023 Quarter Units Quarter Units 1 108,000 1 94,000 2 63,000 3 73,000
kakasveta [241]

Answer:

Culver Company

Production Budget for 2022:

                                Quarter 1     Quarter 2   Quarter 3  Quarter 4    Total

Unit sales                   108,000      63,000        73,000     118,000    362,000

Ending inventory        12,600        14,600        23,600      18,800        18,800

Total units available 120,600       77,600        96,600    136,800    380,800

Beginning inventory   21,600       12,600         14,600     23,600       21,600

Production units        99,000      65,000        82,000     113,200    359,200

Explanation:

a) Data and Calculations:

 2022                   2023

Quarter Units    Quarter Units

1 108,000             1 94,000

2 63,000

3 73,000

4 118,000

                            Quarter 1     Quarter 2   Quarter 3  Quarter 4   Quarter 1

Unit sales                 108,000    63,000        73,000     118,000       94,000

Beginning inventory 21,600      12,600        14,600      23,600        18,800

Ending inventory      12,600      14,600        23,600      18,800

Production Budget for 2022:

                                Quarter 1     Quarter 2   Quarter 3  Quarter 4    Total

Unit sales                   108,000      63,000        73,000     118,000    362,000

Ending inventory        12,600        14,600        23,600      18,800        18,800

Total units available 120,600       77,600        96,600    136,800    380,800

Beginning inventory   21,600       12,600         14,600     23,600       21,600

Production units        99,000      65,000        82,000     113,200    359,200

6 0
3 years ago
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