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steposvetlana [31]
3 years ago
15

The following information relates to the Fowler Company for 2014: Beginning accounts receivable 5,000 Credit Sales 40,000 Ending

accounts receivable 7,000 What was the amount of cash collections?
Business
1 answer:
Komok [63]3 years ago
7 0

Answer:

$38,000

Explanation:

The amount of cash collections would be computed as;

Cash collections = Beginning accounts receivable + Credit sales - Ending accounts receivable

Where;

Beginning accounts receivable = $5,000

Credit sales = $40,000

Ending accounts receivable = $7,000

Therefore,

Cash collections = [($5,000 + $40,000) - $7,000]

Cash collections = $38,000

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Are your loyal customers likely to switch to the new private label product? (That is, is the target market for the private label
Talja [164]

Answer:

Yes.

The loyal customers will also be attracted to the new private label cookie, just as budget shoppers will be attracted.

Explanation:

The proposal, if accepted, may jeopardize the company's normal cookie sales in the supermarket.  The little reduction in the quality of the cookie (which cannot translate to significant production cost reduction) may be perceived as much by some loyal consumers of the normal cookie.  However, the new private label cookie will easily attract budget shoppers, who value the reduced price of $1.99 instead of the normal price of $2.50.  Accepting this proposal should depend on the continued patronage of the normal cookie and the sales number of the private label cookie.

6 0
3 years ago
An investment currently costs $28,000. If the current inflation rate is 6% and the effective annual return on investment is 10%,
zhannawk [14.2K]

Answer:

time require is 2.3 years

Explanation:

given data

currently costs = $28,000

inflation rate = 6%

effective annual return = 10%

future value = $40,000

solution

first we get here interest rate that is

interest rate = annual return investment + inflation rate + ( annual return × inflation rate )   .......................1

put here value and we get

interest rate = 0.10 + 0.06 + ( 0.10 × 0.06 )

interest rate = 0.166

and now we get here present value that is express as

future value = present value × (1+r)^{t}     .....................1

put here value and we get

present value = \frac{40000}{(1+0.166)^t}    

28000 = \frac{40000}{(1+0.166)^t}

0.7 = (1.166)^{-t}

take log both side we get

log( 0.7) = -t log (1.166)

solve it we get

t = 2.3  year

so time require is 2.3 years

4 0
3 years ago
Annie, a marketing manager, is worried her firm is doing a poor job of managing the movement of finished products to the final c
Morgarella [4.7K]

The company should improve their distribution management.

<u>Explanation: </u>

Distribution management describes the process of managing the transport of goods from the supplier or retailer to the point of purchase.  

It is an overriding term that applies to a number of activities and methods, such as packaging, stock, warehousing, supply chain, and transportation.

For the business ' financial success and corporate success, the adoption of a distribution management strategy is crucial.  

Distribution management helps to maintain organization and satisfies customers.

The basic idea of distribution management as a marketing tool is that distribution management takes place in an environment that also includes the following aspects:

Product, Price, Promotion and placement (4 P’s)

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3 years ago
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Luda [366]

Answer:

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Explanation:

7 0
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Assume company x deposits $100,000 in cash in commercial bank. If no excess reserves exist at the time this deposit is made and
kodGreya [7K]

Assume company x deposits $100,000 in cash in a commercial bank. If no excess reserves exist at the time this deposit is made and the reserve ratio is 20 percent, the bank can increase loans by a maximum of $500,000.

Reserve ratio = 20% = 20/100 = 0.25

Initial Money supply = (1/Reserve ratio)*New Deposit = (100,000/0.25) = $ 400,000

Reserve ratio = Rerserve / Deposit

=> Reserves = 0.25*100,000 = 25,000

Max Increase in Money Supply = Initial Money Supply + Reserves/ Reserve Ratio

= $ 400,000 + 100,000

= $ 500,000.

The term commercial bank refers to financial institutions that accept deposits, provide checking account services, issue various loans, and provide basic financial products such as certificates of deposit (CDs) and savings accounts to individuals and small businesses. refers to

Learn more about the commercial banks at

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5 0
2 years ago
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