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?

Answers

Answer 1

Answer:

net income should increase by $38,448

Explanation:

net purchases per day = $11,760

net purchases x 20 days = $11,760 × 20 = $235,200

interest expense = $235,200 × 10%  = $23,520

the gross amount purchased during the 20 day period:  

= (net purchases × 365) ÷ (1 - discount rate)  = ($11,760 × 365 days) ÷ (1 - 0.02)   = $4,292,400 / 98% = $4,380,000

lost discounts = $4,380,000 × 2% = $87,600

the after tax change in net income = ($87,600 - $23,520) × (1 - 40%) = $64,080 × 60% = $38,448


Related Questions

An individual started the corporation by herself and she alone acted to poison the cake, using the corporation's name. The corporation is solely liable.

True
False

Answers

False because I looked it up

If a company's scope is too big, what is likely to happen?
A.
The company will face more conflicts of interest.
B.
Employees will participate in a SWOT analysis.
C.
Employees will have better morale.
D.
The company will lose direction and focus.

Answers

Answer:

d is correct

Explanation:

1. Which is an example of fiscal policy?

A. preventing unions from going on strike

B. raising taxes in order to cover a budge deficit

C. Restricting the amount of money that banks can lend

D. increasing the level of minimum wage


2. Which is an example of fiscal policy?

A. decreasing the interest rates on loans charged to car companies

B. deploying troops to help citizens cope with natural disaster

C. going into debt to buy a large number of vehicles

D. limiting the number of foreign cars that can be sold in the United Stats

Answers

The correct answer is a

Answer:

A. decreasing the interest rates on loans charged to car companies

Need Help ASAP
Name a current issue about which you have a strong opinion. Explain the reasons for your opinion. Write 4 sentences.

Answers

Something everyone sane can agree on:

Right now, black lives are our focus, but this does not mean every other life is not important. No matter what gender, religion/belief, sexuality, race, nationality, etc., every life is equal. This includes animals as well. Animals are not ours, and should be treated with respect, as they have feelings.

The amount of money paid to an investor for each share of stock they own is called a:
share.
supply.
dividend.
ticker.

Answers

Answer:

Dividend

Explanation:

Part of the cost of capital

Peyton Corporation and Rogers Corporation operate in the same industry. Peyton uses the straight-line method to account for depreciation, whereas Rogers uses an accelerated method. Explain what complications might arise in trying to compare the results of these two companies.

Answers

Answer:

If both firms have a lot of depreciable fixed assets, using the MACRS depreciation schedule or some other type of accelerated depreciation method will increase their expenses during the first years resulting in lower operating income. This situation reverses in the later years when the depreciation expense becomes much lower, resulting in higher operating income. On the other hand, using straight line depreciation makes your depreciation expense more stable and sometimes even more realistic.

Companies use MACRS depreciation to lower their tax liabilities by lowering their income. Remember that $1 saved today is worth more than $1 saved tomorrow.

In this case, Rogers Corporation might yield a lower income during the first years that it depreciates its assets, but then it will show much higher income (during the last years). Peyton Corporation should show more stable income.

Would money put aside for a new tv be short term saving, long term saving, fixed expense, or variable expense?

Answers

short term saving i think... idrk

Kubin Company’s relevant range of production is 12,000 to 16,000 units. When it produces and sells 14,000 units, its average costs per unit are as follows:

Direct materials $ 7.30

Direct labor $ 4.30

Variable manufacturing overhead $ 1.80

Fixed manufacturing overhead $ 5.30

Fixed selling expense $ 3.80

Fixed administrative expense $ 2.80

Sales commissions $ 1.30

Variable administrative expense $ 0.80

Required:

1. If 12,000 units are produced and sold, what is the variable cost per unit produced and sold?

2. If 16,000 units are produced and sold, what is the variable cost per unit produced and sold?

3. If 12,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?

4. If 16,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?

5. If 12,000 units are produced, what is the average fixed m

Answers

Answer:

1. If 12,000 units are produced and sold, what is the variable cost per unit produced and sold?

variable cost per unit = $7.30 + $4.30 + $1.80 + $1.30 + $0.80 = $15.50

2. If 16,000 units are produced and sold, what is the variable cost per unit produced and sold?

 variable cost per unit = $7.30 + $4.30 + $1.80 + $1.30 + $0.80 = $15.50

3. If 12,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?

$15.50 x 12,000 = $186,000

4. If 16,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?

 $15.50 x 16,000 = $248,000

5. If 12,000 units are produced, what is the average fixed m

average fixed manufacturing cost = ($5.30 x 14,000) / 12,000 = $6.1833 average fixed selling expense = ($3.80 x 14,000) / 12,000 = $4.4333average fixed administrative expense = ($2.80 x 14,000) / 12,000 = $3.2667total fixed expenses per unit = $13.8833

Apply Concepts In which of these situations would a manufacturer decide to produce more units? A. The marginal benefit is equal to the marginal cost. B. The marginal cost is greater than the marginal benefit. C. The marginal benefit is less than the marginal cost. D. The marginal cost is less than the marginal benefit.

Answers

Answer:

D. The marginal cost is less than the marginal benefit.

Explanation:

In making decision when to produce at economies of scale businesses analyse the marginal cost and marginal benefit of a product.

Marginal cost is the dollar amount spent by a company in producing a good, while marginal benefit is on the customer side.

It is the amount of money a consumer is willing to pay for a good. This declines over time as consumption increases.

The best time for a manufacturer to produce more goods is when the amount the consumer is willing to pay (marginal benefit) is more than the cost of producing the good (marginal cost).

This scenario results in more profit for the manufacturer.

The stock you create is based on your current customers, the repeat customers and the known referral
business to BBFB. It sells to PB for $1.5 million. The check clears. You still have liabilities in this
completed merger and acquisition by Phooey Buitton.
False
True

Answers

FALSEEEEEEEEEEEEEEEEEE

Answer:

False

Explanation:

A new business should be based on an entrepreneur’s individual interests because the entrepreneur must:

A. Have sufficient confidence to succeed
B. Be willing to take personal responsibility
C. Have enough determination to work alone
D. Dedicate as many hours as needed to the work

Answers

Answer:

D. Dedicate as many hours as needed to the work

Explanation:

Have a nice day!! :)

Answer:

D

Explanation:

Utilizing your research notes, imagine you are a business manager and you must create a brief step-by-step problem-solving guide to be used by your employees. The guide should outline the steps in the problem solving process and provide a few details as to how an individual could approach each step. The guide should be no more than one page. Be sure to explain the value of collaboration and teamwork within the workplace.

Answers

Answer:

Define the problem

Analyze the affects of problem on the business

Generate list possible solutions to it.

Evaluate each alternative.

Implement a solution that is best fit

Monitor the results

Explanation:

There are six steps in problem solving. As a business manager one should understand all these steps to immediately counter a problem and progress for business success. The business manager should first define the problem and analyse the affects that it may cause to the business operations. He should then consider list of possible solutions which can solve the problem without any harm to business activities. The best possible solution to the problem should be selected and then it should be implemented to solve the problem quickly. The progress of the problem solving should be evaluated.

A. Market aggressively when demand exceeds capacity.

B. Raise prices when capacity exceeds demand.

C. Offer products with complementary demand patterns​ (e.g., jet skis and​ snowmobiles).

D. Hire only temporary​ part-time employees.

Answers

Answer:

C. Offer products with complementary demand patterns​ (e.g., jet skis and​ snowmobiles).

Explanation:

THIS IS THE COMPLETE QUESTION BELOW;

Which of the following strategies helps to smooth utilization of​ facility, equipment, and​ personnel? A. Market aggressively when demand exceeds capacity. B. Hire only temporary​ part-time employees. C. Offer products with complementary demand patterns​ (e.g., jet skis and​ snowmobiles). D. Raise prices when capacity exceeds demand.

smooth utilization of​ facility, equipment, and​ personnel is very essential in every organization inorder to achieve organizational goals efficiently.one of the best to achieve this is Offering of products with complementary demand, which are the demands that comes along with goods/service due to the demand for goods that are related to it.

It should be noted that Offering of products with complementary demand patterns​ (e.g., jet skis and​ snowmobiles). is one of the strategies that helps to smooth utilization of​ facility, equipment, and​ personnel.

What Would You Plan If a Local Museum Paid You to Attract Teens?

Answers

Answer:

i would plan a fasion show

Explanation:

Answer:

I would plan an interactive segment.

Explanation:

Something like a dig stand or a tye dye your own museum logo shirt.

Two years ago Daniel bought 40 shares of Ford Motor Company (F) for $70 a share. The stock pays an annual dividend of $1.50. Daniel is going to sell his stock at the current market market price of $120 per share. What would his Total Return be?​

Answers

Answer:

75.71%

Explanation:

Total return is a measure of all the returns that investment makes, be it interest, dividend income, capital gain, or other forms.

Total return is called using the format below.

(The asset’s value at the end  – the value at the beginning year) + dividends/value of the investment at the beginning = the total return.

For Daniel, total return would be

=($120x 40)- ($70 x 40) + ($1.50 x 40 x 2)

  ($70 x 40)

=$4,800 - $2,800 + $120

 $2,800

=$2,120/$2,800

=0.75714 x 100

=75.71%

During recessions, state governments often will have to raise taxes and cut spending in order to keep their own budgets balanced. If a large number of states do this, what will happen to the aggregate demand curve at the national level

Answers

Answer:

Shift to the left since both of these actions are contradictory.

Explanation:

In the world of economics within the macro level, their are plenty of things that tend to create the demand curve move left; this may be seen when the overall quantity of products and services demanded at any given indicant falls. this will be thought of because the economy contracting. during a national level, masses which are the first consumers might spend less because the value of living is rising or because government taxes have increased. In in most cases arrange to spend less and save more if they expect prices to rise within the future.

PLEASE HELP QUICKLY: (FIRST ANSWER GETS BRAINLIEST) PERSONAL & FAMILY FINANCE









Clyde is pursuing two clients for his consulting business. Time constraints prevent him from pursing both opportunities simultaneously. Clyde has a higher probability of landing Client A but the revenue generated would be smaller. The decision about which client to pursue is an example of which economic principle?





rational self-interest





trading





opportunity cost

Answers

Answer:

Opportunity Cost

Explanation:

there is a loss of potential gain when taking the other alternative for the other, so the answer has to be opportunity cost. Hope this helps.

Answer:

opportunity cost

Explanation:

Opportunity cost refers to the forgone benefits in a decision-making situation. Decision-making involves choosing among several alternatives. Each of the options has its merits. Once a choice has been made, the opportunity cost is the forfeited benefit from the next best alternative.

Because Clyde cannot pursue both clients at the same time, he has to decide on one. Choosing one client is forfeiting the gains from the other. The foregone benefits from the client who was not chosen represent the opportunity cost. Clyde has to decide which client to pursue; the other one becomes the opportunity cost.

I NEED THIS ASAP

Match each economic term to its definition.

Tiles:
the study of the economy as a whole
the type of unemployment experienced by students who
have graduated and are looking for jobs
an increase in the general price level for most goods
and services
the type of unemployment that occurs when the
economy is in a downturn
consistent growth combined with low inflation

Pairs:
frictional
inflation
economic stability
macroeconomics
cyclical

Answers

Answer:

Explanation:

Edmentum

1). Frictional ⇒ the type of unemployment experienced by students who have graduated and are looking for jobs

2). Inflation ⇒ an increase in the general price level for most goods

and services

3). Economic stability ⇒ consistent growth combined with low inflation

4). Macroeconomics ⇒ the study of the economy as a whole

5). Cyclical ⇒ the type of unemployment that occurs when the economy is in a downturn

What is economy?

Economy refers to the set of inter-related production and consumption activities that used in determining how to allocate the scarce resources.

It is a system in which goods and services are produced and exchanged.

Some of the major economic terms are demand, supply, scarce, employment, income etc.

Learn more about economic here:-

https://brainly.com/question/14787713

#SPJ2

Two friends want to open a clothing consignment store. Individuals bring clothing to the consignment store and if the clothes sell, the consignment shop earns 60% and the customer receives 40% of the sale. What are the advantages of this type of business over other retail stores? Explain the advantages and disadvantages of operating this business as a sole proprietorship and a partnership

Answers

Answer:Some advantages of a consignment store are that if your your item sells both you and the business benifit. A disadvantage of a consignment store is that if the item doesnt sell the business doesnt profit and neither does the person who brought in the item. At other retail stores even if your item doesnt sell you still get the money but you dont get the item back so that could be an advantage or disadvantage.

Explanation:Some advantages of being a proprietorship and owning a consignment store is that you would get to keep all of the 60% sold of all profits.

A dsadvantage of being in a partnership and owning a consignment store would be that you would you would have to spilt the 60% with who ever you are partners with.

What is the definition for revision

Answers

Answer:

Revision means to go back, in thought, to previous actions. You can revise papers, arguments, etc.

Answer: : a change or a set of changes that corrects or improves something.


Explanation: : a new version of something : something (such as a piece of writing or a song) that has been corrected or changed, alter something already written or printed, in order to make corrections, improve, or update

Guys I love cricket and my favourite ipl team is KKR​

Answers

Answer:

same pinch ☺️☺️..............

Same lol

^^ have a good day

Plz answer as soon as possible

The manager of the local clothing store has been receiving complaints about one of his employee's attitude towards customers. What can the manager say to the employee to help her have a positive attitude?

A)I don't like receiving complaints from customers.
B)This attitude is not like you. Let's talk about ways to have a better attitude.
C)You need to start being nice to customers, or else you will be fired.
D)You need to start watching other employees to see how they interact with customers.

Answers

I’m assuming the answer is B
the answer is B

Good luck

Identify the examples of hobbies. Check all that apply.

Neal likes to paint pictures in his free time.
Sidney wants to take a literature class.
Janie works far from her home, and spends most of her day commuting.
Verna dislikes giving speeches, and attends a workshop to improve her public-speaking skills.
Willard plays on a community baseball team.
Adrienne likes to watch movies.

Answers

Answer:

Neal

Willard

Adrienne

Answer:

Neal likes to paint pictures in his free time.

Willard plays on a community baseball team.

Adrienne likes to watch movies.

This is the answers with full sentences.

Ginger works at a shop as a mechanic. One day at work, a fellow employee is pinned under a car when a jack fails. Ginger rushes over to help, and while trying to lift the car suffers a stroke.

Answers

Answer:

Ginger should be covered by worker’s compensation insurance.

Explanation:

Workers' compensation insurance covers accidents suffered by employees while they are performing their work related activities. In this case, someone who has been pinned under a car is considered a work related accident, and Ginger trying to help his fellow coworker is a normal work related activity. If you see a coworker suffer an accident, it is your duty to call for help and if possible and safe (not mandatory), try to help him/her.

If you earn a monthly salary of $2,100 what is the maximum amount of debt you should have to avoid debt issues?

Answers

Answer:

$756

Explanation:

As a rule of thumb, lenders apply the 28/36 rule to determine if a borrower is over-indebted.

The 28/36 rule suggests that individuals should not spend more than 28% of their gross income on household expenses. The debt level should not exceed 36% of gross income.

With a salary of  $2,100, the maximum debt should be 36% of $2100.

=36/100 x $2100

=0.36 x $2100

=$756

Maximum debt should be $756

When you receive a loan, the money the lender gives you is called the

Answers

Answer:

The Principle

Explanation:

There are two main parts of a loan: The principal -- the money that you borrow. The interest -- this is like paying rent on the money you borrow.

The principal is what it is called

59:47

What percentage of jobs are found through networking?
A.0%-20%
b. 20%-40%
c. 40%-60%
d. 60%-80%

Answers

Answer:

the answer is letter D

Explanation:

just took the test it was right on EDG

Answer:

60-80

Explanation:

PLEASE HELP QUICKLY: (FIRST ANSWER GETS BRAINLIEST) PERSONAL & FAMILY FINANCE

Giving away a product for free can be a good business practice. Why is this TRUE?


When those free items make it into the hands of potential consumers, the business receives ongoing advertising through visibility.


Even if every single person throws away the free product, the company hasn’t wasted any time, resources, or money.


When a consumer doesn’t have to make a purchase, the consumer may become frustrated with the process.

Answers

Giving a product away for free can be good because people are more likely to try it if they do not need to pay. If they realise they like the product they will then buy it and tell others about the product as well

help me pleaseeeeee its confusing i will give 100 due to brainliest

Answers

Answer:

unfortunately I am not available for a new role at this point but would like the following to be a quick update as I have now set the following email address for you to send me the information you needed for my application and the application forms and I want to make the necessary for photosynthesis to the sender if they have been accepted by me

If the company is profitable how does that make u an effective leader??

Answers

Answer:

I guess I dont run a buisness

Other Questions
On your first day at your new company you notice a large sign stating that ethics is one of the companys core values. Of what is this an example? An assumption An espoused value or norm An enacted value or norm An artifact what experminental erros do you expect to encounter when developing an experiment involving hot water On which number line do the points represent negative 4 and 1 over 2 and +3?A: Number line from negative 10 to positive 10 in increments of 1 is shown. Only the whole numbers are labeled. A point labeled R is placed between the 4th and 5th tick marks to the left of 0. A point labeled T is placed on the 3rd tick mark to the right of 0. B:Number line from negative 10 to positive 10 in increments of 1 is shown. Only the whole numbers are labeled. A point labeled R is placed on the 3rd tick mark to the left of 0. A point labeled T is placed between the 4th and the 5th tick marks to the right of 0. C:Number line from negative 10 to positive 10 in increments of 1 is shown. Only the whole numbers are labeled. A point labeled R is placed is between the 4th and 5th tick marks to the left of 0. A point labeled T is placed between the 2nd and 1st tick marks to the left of 0.D: Number line from negative 10 to positive 10 in increments of 1 is shown. Only the whole numbers are labeled. A point labeled R is placed on the 1st tick mark to the left of 0. A point labeled T is placed between the 2nd and the 3rd tick mark to the right of 0.PLEASE ANSWER! I NEED HELP!! What part of the atom determines the identity of an atom? how many electrons are in as3- Question: What is always coming, but never arrives? The first edition hardcover of a new book by a popular writer has a demand which is uniformly distributed between 1 and 2 million. The production and transportation costs per hardcover are $10, and the sale price in bookstores is $25. When the paperback version comes out, the hardcover books go on sale for $5. How many hardcovers should be produced Compare the density of nitrogen gas to the density of argon gas when both gases are at 298 K and 101.3 kPa. Fahrenheit 4514. In the middle of the conversation, the firemen hear an alarm and get in the truck for the next house they will burn down. Montag is lost in his thoughts, and is surprised to look up and find that that the firetruck has pulled up in front of . using the graph below find the missing value to complete the t chart Can someone answer all of these please Mary wants to invest her recent bonus in an 12-year, 8 percent coupon bond that pays semiannual coupon payments. The bonds are selling at $1,043.24 today. If she buys this bond and holds it to maturity, what would be her yield-to-maturity John owns a large farm and employs almost 50 labors on the property. With the increasing global warming situation he wants to provide protection for his farm workers from UV rays. Which personal protective equipment should should John provided to his labor In the first 4 of 5 consecutive days, Martha delivered144, 152, 139, and 171 newspapers. How manynewspapers did Martha deliver on the fifth day, if theaverage number of newspapers she delivered per dayduring the five-day period was 155?A. 154B. 162C. 169D. 171Given the number of newspapers delivered byE. Martha on the first four days, she cannot average155 per day for the five-day period. A point charge is a model that represents the charge is acting uniformly Onit surroundings what other characteristic does a point charge have? A. it has no excess neutrons B. it has no excess protons and electrons C. it has no volume D. it has no Mass Aballisprojectedverticallyupwardswithaninitialvelocityofugoestoamaximumheighthbeforecomingtoground.Whatisthevalueofh? Emily is solving the equation 2(x+9)=4(x+7)+2. Her step are shown.Click on the first step in which Emily made an error.A. Step 1: 2(x+9)=4(x+7)+2B. Step 2: 2x+18=4x+28+2C. Step 3: 2x+18=4x+26D. Step 4: -8x=2xE. Step 5: -4=xAlso explain why answer B is wrong. let (-6,5) be a point on the terminal side of theta. find the exact values of sintheta, costheta, and sintheta Simple question, winner gets a prize!A pool has a walkway around it that is a width of 4 1/2 feet all the way around! The length is 100 feet and the side length is 30 feet, what is the area of the walkway? Work must be shown if there is more than one answer. :) Please helps!!How do livingthings grow?