subject
Business, 07.10.2019 17:10 trent1002brown

Blueroot inc. is considering a change in its financing policy. currently, it uses maximum trade credit by not taking discounts on its purchases. the standard industry credit terms offered by all its suppliers are 2/10 net 30 days, and the firm pays on time. the new cfo is considering borrowing from its bank, using short-term notes payable, and then taking discounts. the firm wants to determine the effect of this policy change on its net income. its net purchases are $11,760 per day, using a 365-day year. the interest rate on the notes payable is 10%, and the tax rate is 40%. if the firm implements the plan, what is the expected change in net income?

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 03:30, shawnplayzsavage
He aldermanalderman company has prepared a sales budget of 42 comma 00042,000 finished units for a 3-month period. the company has an inventory of 10 comma 00010,000 units of finished goods on hand at december 31 and has a target finished goods inventory of 11 comma 00011,000 units at the end of the succeeding quarter. it takes 44 gallons of direct materials to make one unit of finished product. the company has inventory of 64 comma 00064,000 gallons of direct materials at december 31 and has a target ending inventory of 53 comma 00053,000 gallons at the end of the succeeding quarter. how many gallons of direct materials should aldermanalderman company purchase during the 3 months ending march 31? select the labels and enter the amounts to calculate the direct materials (gallons) to be purchased.
Answers: 3
image
Business, 22.06.2019 09:00, valejuan
According to this excerpt, a key part of our national security strategy is
Answers: 2
image
Business, 22.06.2019 10:30, kingyogii
The rybczynski theorem describes: (a) how commodity price changes influence real factor rewards (b) how commodity price changes influence relative factor rewards. (c) how changes in factor endowments cause changes in commodity outputs. (d) how trade leads to factor price equalization.
Answers: 1
image
Business, 22.06.2019 21:20, dorianhenderson987
Label each of the following statements true, false, or uncertain. explain your choice carefully. a. workers benefit equally from the process of creative destruction. b. in the past two decades, the real wages of low-skill u. s. workers have declined relative to the real wages of high-skill workers. c. technological progress leads to a decrease in employment if, and only if, the increase in output is smaller than the increase in productivity. d. the apparent decrease in the natural rate of unemployment in the united states in the second-half of the 1990s can be explained by the fact that productivity growth was unexpectedly high during that period.
Answers: 3
You know the right answer?
Blueroot inc. is considering a change in its financing policy. currently, it uses maximum trade cred...

Questions in other subjects:

Konu
World Languages, 24.11.2019 08:31
Konu
History, 24.11.2019 08:31
Konu
English, 24.11.2019 08:31