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?
Answers: 1
Another question on Business
Business, 22.06.2019 04:00
Which law would encourage more people to become homeowners but not encourage risky loans that could end in foreclosure? options: offering first time homebuyers tax-free accounts to save for down payments requiring all mortgages to be more affordable, interest-only loans outlawing home inspections and appraisals by mortgage companies limiting rent increases to less than 2% a year
Answers: 2
Business, 22.06.2019 16:40
Differentiate between the trait, behavioral, and results-based performance appraisal systems, providing an example where each would be most applicable.
Answers: 1
Business, 22.06.2019 21:40
Engberg company installs lawn sod in home yards. the company’s most recent monthly contribution format income statement follows: amount percent of sales sales $ 80,000 100% variable expenses 32,000 40% contribution margin 48,000 60% fixed expenses 38,000 net operating income $ 10,000 required: 1. compute the company’s degree of operating leverage. (round your answer to 1 decimal place.) 2. using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. (do not round intermediate calculations.) 3. construct a new contribution format income statement for the company assuming a 5% increase in sales.
Answers: 3
Business, 23.06.2019 01:00
Sarah is an accountant with desires to open her own business. she is looking for office space at a reasonable rate along with internet service. of the conditions that need to be put in place for the entrepreneurial ecosystem, she needs
Answers: 1
You know the right answer?
Blueroot inc. is considering a change in its financing policy. currently, it uses maximum trade cred...
Questions
Social Studies, 11.06.2020 00:57
Mathematics, 11.06.2020 00:57
Mathematics, 11.06.2020 00:57
Mathematics, 11.06.2020 00:57
Biology, 11.06.2020 00:57
