Why do we say that credit is basically a loan?

Do they still sell hand boards at dollar tree

Tcecarenko [31]

I don’t think so fbdvvhhdgnt

8 0

4 years ago

Stephen graduates from college and his income increases by $30,000. Nothing else changes. Stephen decreases the quantity oframen

KIM [24]

Answer: A. ramen noodles and chocolate chip cookies are inferior goods

Explanation:

Inferior goods are goods that experience decrease in demand when consumers experience increase in income.

Inferior goods has to do with social economic class, certain people at lower socio economic class go for certain goods because of its affordability not minding quality, same people might stop demanding for such good at a higher socio economic class.

6 0

3 years ago

Troy files a petition for bankruptcy. Troy must include with the petition

FrozenT [24]

The answer to this question will be A

3 0

3 years ago

Accounting Fundamentals of Healthcare ManagementWorking capital techniques focus specifically on what aspects of an organization

ycow [4]

Answer:

Check the following calculations

Explanation:

1. Working capital techniques focuses on short term borrowings of an organisation. An organisations meet its working capital needs by borrowing the funds for short term and meet the funds it requires to manage the operational requirements. This is the reason why short term borrowing limits of any organisation is linked directly to the value of its working capital ie., Inventories, receivables etc.,

2. A manager typically focusses on reducing the receivables by improving the collections from overdue debtors and on evaluating whether the inventories are procured optimally or purchased in bulk more than the requirement and negotiates with vendors for increased credit terms. He also works on ensuring that the short term borrowings are represented by the drawing power available from its current assets. If there is any gap, he would work on borrowing long term funds and utilise it to meet the shortfall in working capital with necessary approvals.

3.Accounts receivable cycle represents the no of days between the date of invoicing to a customer to the date of realisation of billed amount from the customer. In health care industry, most of the revenues are settled through insurance claim process. Insurance companies typically delay the settlement stating deficiencies in the documents submitted. This would result in increased ageing of receivables. Unless closely monitored and followed up, the realisation of dues would be a concern in this industry.

4. Goal of Economic Order Quantity (EOQ) is to minimise the inventory holding costs and the costs of ordering a product by optimally assessing the quantity to order .Here , the key assumption is the demand quantity would be certain and constant throughout the period. Just in Time (JIT) inventory is a manufacturing system which focuses to produce or procure products only when the demand arise. Hence, the focus is mainly on time reduction between the time of order and time of sourcing the material. JIT doesnt assume any static demand.

5. Revenue cycle in a Health care industry represents the difference between the date of admission of a patient and the date of receipt of fees . Steps involved in managing revenue cycle in a health care industry are provided below:

- Developing a robust system to track and monitor the revenue cycle for each patient

- Agreeing on a clear SOP (Standard operating procedure) with Insurance companies in submission and settlement of claims

- Review of revenue cycle by Top management team and raising relevant queries and actionable points to improve the status

Decision on offering cash discount.

It is prudent to collect after 30 days instead of giving cash discount as shown below

Download xlsx

8 0

3 years ago

The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for t

andre [41]

Answer:

A. $66,000

B. $66,000

C. $66,000

Explanation:

Dollars in dollars out can be easily understood by just deducting cash expenses from the revenue received from cash sales. we can not deduct depreciation expense as it is a non-cash item.

DATA

Revenue = 160,000

Variable cost = 50,000

Rental cost = 30,000

Depreciation = 10,000

Profit before tax = 70,000

Tax (70,000 x 20%) = 14,000

Net Income = 56,000

a) Dollars in minus dollars out

Dollars in minus dollars out = Revenue - rental costs - variable costs - taxes Dollars in minus dollars out = $160,000 - $30,000 - $50,000 - $14,000

Dollars in minus dollars out = $66,000

b) Adjusted accounting profits

Operating cash flow = Net income + depreciation

Operating cash flow = $56,000 + $10,000

Operating cash flow = $66,000

c) Add back depreciation tax shield

Operating cash flow = [(Revenue - rental costs - variable costs) × (1 - 0.2)] + (depreciation × 0.2)]

Operating cash flow = ($160,000 - $30000 - $50,000)*0.8 + $10,000*0.2 Operating cash flow = $66,000

3 0

3 years ago