subject
Business, 03.08.2021 15:30 savannahvargas512

Dome Metals has credit sales of $198,000 yearly with credit terms of net 120 days, which is also the average collection period. Assume the firm adopts new credit terms of 4/10, net 120 and all customers pay on the last day of the discount period. Any reduction in accounts receivable will be used to reduce the firm's bank loan which costs 8 percent. The new credit terms will increase sales by 20% because the 4% discount will make the firm's price competitive. a. If Dome earns 25 percent on sales before discounts, what will be the net change in income if the new credit terms are adopted? (Use a 360-day year.)
Net change in income
b. Should the firm offer the discount?
a. No
b. Yes

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 00:00, jboii11
Choose the list of the best uses for word processing software. lists, resumes, writing a book, and payroll data letters to your friends, resumes, spreadsheets, and school papers resumes, cover letters, databases, and crossword puzzles book reports, letters to your friends, resumes, and contracts
Answers: 2
image
Business, 22.06.2019 05:00, vadrian4056
Every 10 years, the federal government sponsors a national survey of health and health practices (nhanes). one question in the survey asks participants to rate their overall health using a 5-point rating scale. what is the scale of measurement used for this question? ratio ordinal interval nominal
Answers: 1
image
Business, 22.06.2019 18:00, extraemy
Companies under market structures are independent
Answers: 2
image
Business, 22.06.2019 19:20, josh200508
Advertisers are usually very conscious of their audience. choose an issue of a popular magazine such as time, sports illustrated, vanity fair, rolling stone, or the like. from that issue select three advertisements to analyze. try to determine the audience being appealed to in each advertisement and analyze the appeals used to persuade buyers. how might the appeals differ is the ads were designed to persuade a different audience.
Answers: 2
You know the right answer?
Dome Metals has credit sales of $198,000 yearly with credit terms of net 120 days, which is also the...

Questions in other subjects:

Konu
Mathematics, 14.10.2020 01:01