Answer:
a rebate because companies like that and paint companies give out rebates
Answer:
$125,165.49
Explanation:
Daily Sales Outstanding is computed by dividing Average Accounts Receivable over Daily Credit Sales.
In this case, if the DSO is 71, then the Daily Credit Sale is $2,887.3239($205,000/71).
Then, the old sales is $1,053,873.24 ($2887.3239 x 365).
If this is reduced by 15% after the policy is implemented, the new sales is $895,792.25 ($1,053,873.23-15%) and the new daily sales is $2,454.23 ($895,792.25/365).
Using these DSO formula, the new Accounts Receivable level will be $125,165.49 (51 x $2,454.23).
Answer:
The flexible-budget amount is $120,000
Explanation:
The flexible-budget amount is the same lump sum as the static budget.
Therefore, The flexible-budget amount is $120,000.
Answer:
18.75%
Explanation:
Food Shoppe galore has a total market value stock of $650 million
The total market value of the company's debt is $150 million
The first step is to calculate the total market value of the company's capital
= $150,000,000 + $650,000,000
= $800,000,000
Therefore, the weighted average of the company's debt can be calculated as follows
= $150,000,000/$800,000,000
= 0.1875×100
= 18.75%
Hence the weighted average of the company's debt is 18.75%
