1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Drupady [299]
3 years ago
7

Why would firms that rely heavily on credit sales find factoring attractive?

Business
1 answer:
lorasvet [3.4K]3 years ago
5 0
From my understanding, factoring is a specific transaction in which a business sells its invoices to a factor, which is a third party commercial financial company. This process is completed so that the business can get cash quicker than it would to wait for a customer’s payment. With factoring, a company will have more<span>more more flexibility because the funds are not restricted, rather than having to deal with a typical bank loan</span><span />
You might be interested in
For the past year, Kayla, Inc., has sales of $44,432, interest expense of $3,074, cost of goods sold of $14,909, selling and adm
ryzh [129]

Answer:

$14,439.8

Explanation:

The computation of operating cash flow is shown below:-

The operating cash flow is shown below:

= EBIT + Depreciation - Income tax expense

where,

EBIT = Sales - cost of good sold - depreciation expense -  selling and administrative expense

= $44,432 - $14,909 - $4,965 - $10,816

= $13,742

Tax expenses =  ( Earnings before interest and tax - interest expenses ) × tax rate of 40%

= ($13,742 - $3,074) × 40%

= $10,668 × 40%

= $4,267.2

So, the operating cash flow

= $13,742 + $4,965 - $4,267.2

= $14,439.8

7 0
3 years ago
In the United States, which assessment system measures inflation?
tresset_1 [31]

Answer:

C. consumer price index

Explanation:

Inflation is the general increase in prices in a country in a period. In the US, inflation is measured using the consumer price index, CPI. The CPI is a measure of the weighted average price of selected goods and services that represent the general consumption in the economy. The weighted average price at a particular time is compared to the weighted average price at the beginning of the period.

The weighted average price for the basket is compared to the previous period to determine the rate at which prices are increasing.  A high rate of price increment signifies a high rate of inflation. The Government sets a target rate of inflation for the economy. It employs fiscal and monetary policies to keep inflation within acceptable levels.

6 0
3 years ago
A hamburger stand near the local mall sells hamburgers for $3.99, drinks for $1.99, and fries for $1.49, while a gourmet restaur
wel

Answer:

Psychological pricing

Explanation:

Psychological pricing also known as price ending, charm pricing is a pricing and marketing strategy based on the theory that prices produces a psychological impact. This involves setting prices as odd prices being a little less than a whole number such as $9.99 or £2.99. It is believed that consumers think that this prices are lower than they actually are.

5 0
3 years ago
Read 2 more answers
Suppose that three firms make up the entire wig manufacturing industry. One has a 60% market share, and the other two have a 20%
mr_godi [17]

Answer:

4400

Increase

c. An index of 10,000 corresponds to a monopoly firm with 100% market share

Explanation:

Here are the options to the last question

Why is the largest possible value of the Herfindahl index 10,000 ?

a. An index of 10,000 corresponds to 100 firms with a 1% market share each

b. An industry with an index higher than 10,000 is automatically regulated by the Justice Department

c. An index of 10,000 corresponds to a monopoly firm with 100% market share

HHI index = 60²  + 20² + 20² = 4400

If one of the firms leaves the industry, the market share would be distributed between the two firms and this would cause the HHI index to increase as firm's concentration would increase

If only one firm operates in the industry, its market share would be 100% and its HHI index would be 100² = 10,000. For an industry to exist there has to be at least one firm operating in the industry,

7 0
3 years ago
Kurtz Fencing Inc. uses a job order cost system. The following data summarize the operations related to production for March, th
dimulka [17.4K]

Answer:

The solution is shown in the file attached below

Explanation:

Download docx
8 0
3 years ago
Other questions:
  • Which of the following statements is NOT true regarding the importance of the role that an operations manager plays in addressin
    10·1 answer
  • What is the purpose of approving "pork barrel" spending?
    5·1 answer
  • An accountant’s standard report on a compilation should state that the accountant
    11·1 answer
  • Nelson Ovalles worked as a cable installer for Cox Rhode Island Telecom, LLC, under an agreement with a third party, M&amp;M Com
    6·1 answer
  • ABC made a $15,000 sale on account with the following terms: 1/10, n/30. If ABC uses the gross method to record sales made on cr
    13·1 answer
  • When shoppers boycotted target because the chain had a policy of not allowing solicitors, including the salvation army, to colle
    6·1 answer
  • On January 1, 2018, equity account balances are as follows: Preferred Stock $ 500,000 Common Stock 1,000,000 Paid-In Capital in
    11·1 answer
  • Freelife, New Hampshire has a labor force of 78,567 persons and employment of 74,382. The unemployment rate for the city is: Gro
    6·1 answer
  • Which is not an advantage of a savings account?
    8·1 answer
  • A(n) ________ is a specific type of strategic alliance in which the partners form a separate, independent organization for some
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!