Answer:
Option c ($9,000) is the correct answer.
Explanation:
The given values are:
Annual increase in sales,
= $100,000
Now,
The collection expenses will be:
= 
= 
Selling as well as manufacturing expenses will be:
= 
= 
Tax expense will be:
= 
= 
After-tax profits increase will be:
= 
= 
($)
Answer:
Inventory cycle = <u>Inventory </u> x 365 days
Cost of goods sold
Inventory cycle = <u>$75,000</u> x 365 days
$360,000
= 76.04 days
Receivable days = <u>Accounts receivable</u> x 365 days
Sales
= <u>$160,000</u> x 365 days
$600,000
= 97.33 days
Payable days = <u>Accounts payable</u> x 365 days
Cost of sales
= <u>$25,000 </u> x 365 days
$360,000
= 25.35 days
Cash conversion cycle
= Inventory cycle + Receivable days - Payable days
= 76.04 days + 97.33 days - 25.35 days
= 148.0 days
Explanation:
Cash conversion cycle is calculated as raw inventory cycle plus receivable days minus payable days. Inventory cycle is the ratio of inventory to cost of goods sold multiplied by number of days in a year. Receivable days refer to the ratio of accounts receivable to sales multiplied by number of days in a year. Payable day is the ratio of accounts payable to cost of goods sold multiplied by number of days in a year.
Answer:
A week later, you browse through the trend reports.
Answer:
This makes you the debtor. When you receive money whether it is in the form of a cheque or cash in hand, you are the debtor because money is being debited (or out into your bank account).
