subject
Business, 06.10.2019 06:30 aesthetickait

Johnson electronics is considering extending trade credit to some customers previously considered poor risks. sales would increase by $300,000 if credit were extended to these new customers. of the new accounts receivable generated, 6 percent will prove to be uncollectible. additional collection costs will be 5 percent of sales, and production and selling costs will be 78 percent of sales. the firm is in the 25 percent tax bracket. a. compute the incremental income after taxes. b. what will johnson’s incremental return on sales be if these new credit customers are accepted? (input your answer as a percent rounded to 2 decimal places.) c. if the accounts receivable turnover ratio is 3 to 1, and no other asset buildup is needed to serve the new customers, what will johnson’s incremental return on new average investment be? (do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.)

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 16:30
Collective bargaining provides for a representative of employees to negotiate with a representative of management over labor issues including wages.true or false?
Answers: 3
question
Business, 22.06.2019 20:00
The master manufacturing company has just announced a tender offer for its own common stock. master is offering to buy up to 100% of the company's stock at $20 per share contingent on at least 64% of the outstanding shares being tendered. after the announcement of the offer, the stock closed on the nyse up 2.50 at $18.75. a customer has 100 shares of master stock in his cash account. the customer tells you that he wishes to "cash out" his position. you should recommend that the customer:
Answers: 2
question
Business, 22.06.2019 23:00
How an absolute advantage might affect a country's imports and exports?
Answers: 2
question
Business, 22.06.2019 23:20
You work as the sales manager for a company that sells office supplies to businesses of all sizes. because the profit margins are razor-thin, you need to ensure that you are getting the very best prices on paper, pencils, pens, post-it notes, and other office supplies from the manufacturers. when reviewing the quarterly profit statement, you realize that your costs are higher than they should be, and you trace the higher costs back to an employee who has been lax about getting competitive bids to ensure the lowest prices. when you conduct your research to determine the reason for the higher costs, and take action to bring those costs back down, in which of the key management processes are you taking part?
Answers: 3
You know the right answer?
Johnson electronics is considering extending trade credit to some customers previously considered po...
Questions
question
Mathematics, 30.05.2021 04:40
question
Mathematics, 30.05.2021 04:40
question
Physics, 30.05.2021 04:40
Questions on the website: 13722363