Q2) A company is evaluating the extension of credit to a new group of customers.
Although these customers will provide $180,000 in additional credit sales, 12% are likely
to be uncollectible. The company will also incur $16,200 in additional collection
expense. Production and marketing costs represent 72% of sales. The firm is in a 34% tax
bracket and has a receivables turnover of four times. No other asset buildup will be
required to service the new customers. The firm has a 10% desired return.
has a
a. Calculate the incremental income after taxes and the return on incremental
investment. Should the company extend credit to these customers?
b. Based on the income level determined in (a), should credit be extended if an
additional investment in inventory is considered? Assume an inventory turnover
of 1.6 times.

Answers

Answer 1

Answer:

Step-by-step explanation:

a. To calculate the incremental income after taxes, we need to determine the incremental costs and revenues associated with extending credit to the new customers. The additional credit sales will generate $180,000 in revenue, but we need to subtract the expected uncollectible amount of 12% * $180,000 = $21,600. The net additional credit sales will be $180,000 - $21,600 = $158,400.

The production and marketing costs will be 72% * $180,000 = $129,600. The total incremental costs will be $129,600 + $16,200 (collection expense) = $145,800.

The incremental income before taxes will be $158,400 - $145,800 = $12,600. The income tax will be 34% * $12,600 = $4,284. The incremental income after taxes will be $12,600 - $4,284 = $8,316.

To calculate the return on incremental investment, we need to determine the incremental investment required to extend credit to the new customers. Since no additional investment in assets is required, the incremental investment will be equal to the incremental costs of $145,800. The return on incremental investment will be $8,316 / $145,800 = 5.7%.

Based on the return on incremental investment of 5.7%, the company should not extend credit to the new customers, as it is below the desired return of 10%.

b. If an additional investment in inventory is required to extend credit to the new customers, we will need to recalculate the incremental income after taking into account the additional investment. If the additional investment in inventory is $x, the incremental investment will be $145,800 + $x. The incremental income before taxes will be $158,400 - ($129,600 + $16,200 + $x) = $12,600 - $x. The income tax will be 34% * ($12,600 - $x) = $4,284 - $x * 0.34. The incremental income after taxes will be ($12,600 - $x) - ($4,284 - $x * 0.34) = $8,316 - $x * 0.34.

To determine whether credit should be extended, we need to compare the return on incremental investment to the desired return of 10%. The return on incremental investment will be ($8,316 - $x * 0.34) / ($145,800 + $x). Setting this equal to the desired return of 10% and solving for x, we find that the additional investment in inventory cannot exceed $24,764 for the company to meet its desired return. If the additional investment in inventory is less than or equal to $24,764, the company should extend credit to the new customers. If it is greater than $24,764, the company should not extend credit to the new customers.


Related Questions

Find the solution to the system of equations. -4-3-2-1 4M= 432 21 1 1234 -1 -2 -3 -4 /y = 2x + B 1 2 3 4 y=-x ([?], [])​

Answers

After solving the equations, the value obtained for x and y will be equal to  (-1, 1).

What is an equation?

Mathematical expressions with two algebraic symbols on either side of the equal (=) sign are called equations.

This relationship is illustrated by the left and right expressions being equal. The left-hand side equals the right-hand side is a basic, straightforward equation.

As per the given equations in the question,

y = 2x + 3     (i)

y = -x            (ii)

Substitute equation (ii) in (i)

-x = 2x + 3

-x - 2x = 3

-3x = 3

x = -3/3

x = -1

Substitute x = -1 in equation (i)

y = 2x + 3

y = 2(-1) + 3

y = -2 + 3

y = 1

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Tomas is planning out a rail trail using a map with a marked grid. The head of the trail, which has an information kiosk, is located at (3, 0). He moves 1 unit east and 3 units north and places a pin at (4, 3) to represent the location of another information kiosk. He continues placing pins so that each pin is 1 unit east and 3 units north in relation to the previous pin. Which of the following points will have pins? Select all that apply.

A coordinate plane has an x-axis labeled East from 0 to 10 in increments of 1 and a y-axis labeled North from 0 to 10 in increments of 1.

A.
(5, 6)

B.
(6, 8)

C.
(7, 10)

D.
(8, 17)

E.
(9, 18)

F.
(10, 21)

Answers

Answer:

A, B, C.

Step-by-step explanation:

Select all of the equations that are equivalent to 8k = 20. 8k – 4 = 20 + 4 8k ÷ 4 = 20 ÷ 4 8k × 3 = 20 × 3 8k + 10 = 20 + 10 8k × 5 = 20 ÷ 5

Answers : ACD

Answers

The equations that are equivalent are (b) 8k ÷ 4 = 20 ÷ 4, (c) 8k × 3 = 20 × 3 and (d) 8k + 10 = 20 + 10

How to determine the equations that are equivalent?

From the question, we have the following parameters that can be used in our computation:

8k = 20.

Divide both sides of the equation by 4

So, we have the following representation

8k ÷ 4 = 20 ÷ 4

Multiply both sides of the equation by 3

So, we have the following representation

8k × 3 = 20 × 3

Add 10 to both sides of the equation

So, we have the following representation

8k + 10 = 20 + 10

Hence, the equivalent equation is 8k + 10 = 20 + 10

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a,b)Find the phasor form of the following E-field, the polarization type, and plot the vector on the X-y axis (z-0) for one period a) E(z,t) = xZcos(wt kz) y4cos(wt kz) b) E(z,t) = R2cos(wt + kz) - 94sin(wt + kz)

Answers

a) The phasor form of E-field = xˆ 2cos(wt - kz) - yˆ 4cos(wt - kz) is 2√5 L(-63.43).

Polarization type is linearly polarised.

b) The phasor form of E-field = ?

E(z,t) = xˆ 2cos(wt + kz) - yˆ 4sin(wt + kz) is E(z,t) =2√5 L(-143.43). polarization type is elliptical.

We have given that

E⃗(z,t) =2xˆcos(wt - kz) - 4 yˆcos(wt - kz)

|r⃗ | = √((2cos(wt - kz))² + (- 4cos(wt - kz))²)

= √(4cos²(wt - kz) + 16cos²(wt - kz))

= √(20cos²(wt - kz))

= 2√5 cos(wt - kz)

φ = 4cos(wt - kz)/(2cos(wt - kz))

= tan⁻¹ 1(-2) = -63.43°

So, E(z,t) = 2√5 L(-63.43)

b) E(z,t) = xˆ 2cos(wt + kz) - yˆ 4sin(wt + kz)

= xˆ 2cos(wt + kz) - yˆ 4cos(wt + kz -π/2)

|r| = √((2cos(wt + kz))² + (- 4sin(wt -+kz))²)

= √20

phi = tan⁻¹(- 4cos(wt - kz)/(2cos(wt - kz)) - π/2

= tan⁻¹( -2) + π/2 = - 143.43

so, E(z,t) =2√5 L(-143.43)

E(z,t) = xˆ 2cos(wt - kz) - yˆ 4cos(wt - kz)

if wt = 0°

E(z,t) = xˆ 2cos(0 - kz) - yˆ 4cos(0- kz)

= 2xˆ - 4yˆ

wt = 30° , E(z,t) = xˆ 2cos( - kz) - yˆ 4cos(0- kz)

E(z,t) = √3/2(2) xˆ - √3/2(4) yˆ

= √3xˆ - 2√3yˆ

for wt = 45°

E(z,t) = √2 xˆ - 2√2 yˆ

for wt = 90° =>E(z,t) = 0

for wt = 60° , E(z,t) = xˆ - 2 yˆ as seen in above graph that is linear polarised

For part (b) ,

E(z,t) = 2 xˆcos(wt - kz) - 4yˆ sin(wt + kz)

From graph elliptical polarised,

for wt = 0 , E(0,t) = 2 xˆ

for wt = 90° , E(0,t) = -4yˆ

for wt =180° , E(0,t) = -2 xˆ

for wt = 270° , E(0,t) = -4yˆ

Hence, we get the answer of both parts.

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there are 75 animals at the animal shelter. if 27 are hamsters, what percent are hamsters

Answers

36%

To find the percentage of a whole you would do this:

27/75 = 0.36
0.36 x 100 = 36
Answer:

36% of the animals in the shelter are hamsters.

Step-by-step explanation:

1. Find the quotient between the amount of hamsters and the total of animals.

[tex]\frac{27}{75}= 0.36[/tex]

2. Convert the decimal into a percentage.

0.36 = 36%.

3. Conclude.

36% of the animals in the shelter are hamsters.

Determine all real values of a.

a2 = 81

A: a = 9
B: a = ±9
C: a = 40.5
D: a = ±40.5

Answers

The answer is c because 81 divided by 2 equals 40.5

How much would you need to deposit in an account now in order to have $2,000.00 in the account in 13
months?

Assume the account earns 4.01% simple interest.
in your account now.

You would need to deposit _____ in your account now.

Answers

Answer:

$1916.73

Step-by-step explanation:

[tex]I=Prt=P(0.0401)(13/12) \\ \\ \implies P+P(0.0401)(13/12)=2000 \\ \\ P=\frac{2000}{1+(0.0401)(13/12)} \approx \$1916.73[/tex]

Let’s find 3/4-1/6
First write the subtraction with a common denominator then subtract

Answers

[3/4]* 3 =9/12
[1/6]* 2=2/12
9/12-2/12=7/12

Answer:

7/12

Step-by-step explanation:

I set up the equation, but I first had to find the common denominator which is 12 so I multiplied 3/4 by 3 (top and bottom) and I multiplied 1/6 by 2   (also top and bottom) So I got 9/12-2/12 and when I subtracted I got 7/12

(hope you understood how I got my answer..)

in the U
f(x) =
f'(x) =
xsinx COSX
oxsinx - cosx + (xsinx) - D[cosx)
+
D[x sinx] =
J₁
11
=
o[f(x). g(x)] = f'(x) g(x) + f(x
$6
D[sinx]
D[x]. sinx + x.
. Sinx
Sinx + x CUSX
1
sinx +X COSX
x COSY
£²
(x) = (sinx +xcosx) COSX + (xsinx)(-sinx)
f'(x) =
2
X Sin x

Answers

Refer to the photo taken.

Tonya is packing a moving truck with
boxes. Each box is 8 inches high. The
space remaining is 56 inches high. A
space of 2 inches must be left on top.

4. What is the maximum number of
boxes that will fit in the remaining
space?
A.4
B.5
C. 6
D.7

Answers

Answer:

  C. 6

Step-by-step explanation:

You want to know the number of 8-inch high boxes that will fit in a space 56 inches high, if an empty space of at least 2 inches must be left.

Relation

The number (n) of boxes and the required empty space that can fit in the available space is ...

  8n +2 ≤ 56

  8n ≤ 54

  n ≤ 6 3/4

6 boxes will fit in the remaining space.

John Carlo takes a car to a little business to borrow some money, John Carlo is given 3,400.00.00. He must pay back the $3,400.00 in addition to a $1,000.00 fee in 4 months.



What is the simple interest rate is he being charged?


Answers

Answer:

Step-by-step explanation:

simple interest I = Prt

I = $1,000 = 3,400r (4/12)

⇒ 3,400r (4/12) = 1,000

⇒ 3400r = 333.333

⇒ r = 0.098

      ≈ 9.80 %

can anyone help me out!

Answers

Answer:

I don't know this is confused


A chef preheats an oven. It starts at room temperature, 68°F, and heats up 23°F per minute.
How long does it take for the oven temperature to reach 275°F?
Write and solve an equation to find the answer.
minutes hi

Answers

Answer:

93 minutes

Step-by-step explanation

23/68 x/275= 93 min

It will take about 9 minutes if the rate is 23 degrees per minute plus the 68 degrees

Use the graph of the exponential function to find k, rounded to the nearest hundredth.
Responses

A
1.61

B
0.32

C
1.00

D
0.83

Answers

The value of k is 0.32 .

What is an exponential function?

The exponential function is one of the most important functions in mathematics (though it would have to admit that the linear function ranks even higher in importance). To form an exponential function, we let the independent variable be the exponent.

An exponential function is a function that usually takes the form f(x) = bˣ.

The exponential curve depends on the exponential function and it depends on the value of the x.

where;

b = base

ˣ = power

The general exponential function that models  the data given is:

[tex]y = ce^{kt}[/tex]

According to the (5,5c)

[tex]ce^{5k} = 5c\\\\e^{5k} = 5\\\\5k = ln5\\\\k = \frac{ln5}{5} \\\\k = 0.32[/tex]

Hence , the value of k is 0.32 .

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Miguel is mailing packages.Each small package cost him $2.20 to send.Each large package cost him $3.90.How much will it cost him to send 6 small packages and 1 large package?

Answers

Answer: $13.50

Step-by-step explanation:

It will cost Miguel $13.50 to send 6 small packages and 1 large package. To find the total cost, we can first calculate the cost of sending the small packages by multiplying the cost per small package by the number of small packages: 2.20 * 6 = $<<2.20*6=13.20>>13.20

We can then add the cost of the large package to find the total cost: 13.20 + 3.90 = $<<13.20+3.90=17.10>>17.10.

Therefore, it will cost Miguel $17.10 to send 6 small packages and 1 large package.

Multiply 3.7x and 6x.
A: 9.7x
B: 9.7x2
C: 22.2x
D: 22.2x2

Answers

Answer:

22.2x²

Step-by-step explanation:

3.7x = 3.7 × x

6x = 6 × x

Multiplication of 3.7x and 6x

= 3.7 × 6 × x × x

= 22.2 × x²

= 22.2x²

Answer:

C. 22.2x^2

Step-by-step explanation:

If f(x) ==x²-1, and
g(x) = x + 5, then
f(g(x)) = [? ]x²+[ ]x + [ ]

Answers

Answer:

-1, -10, -26

Step-by-step explanation:

f(x) = -x² - 1

g(x) = x + 5

f(g(x)) =

-(g(x))² - 1 =  ==> plugin g(x) for x in f(x) in order to get f(g(x))

-(x + 5)² - 1 =  ==> plugin x+5 for g(x)

-(x + 5)(x + 5) - 1 =

-(x(x + 5) + 5(x + 5)) - 1 =   ==> distribute (x+5) to x and 5

-((x*x + 5*x) + (5*x + 5*5)) - 1 = ==> simplify

-(x^2 + 5x + 5x + 25) - 1 =

-(x^2 + 10x + 25) - 1 =

-x^2 - 10x - 25 - 1 = ==> distribute the negative sign to x^2, 10x, and 25

-x^2 - 10x - 26 = -1x^2 + (-10x) + (-26)

Subtracting by a positive number is equivalent to adding by a negative number

Answer: -1, -10, -26

I’m so lost someone help!

Answers

Answer:

Cubic, Binomial

Step-by-step explanation:

A cubic function is when the degree of the polynomial is 3

The degree is the highest power

A binomial has 2 terms

So 8x^3-1 is a binomial and is cubic

Find the product of (x − 2i)2.

Answers

Solution

Simplify the real and imaginary parts of the expression.

2x-4i

5. ​______ is the transfer of thermal energy by collisions between particles in matter.
​a.​Convection​ b.​Radiation. ​c.​Conduction. ​d.​​Contact

Answers

Answer:

conduction its the answer


Four students are getting ready for a running competition. They each set a goal to run
a certain number of laps in the week before the competition.

Ivory's goal is to run 50
laps. They ran 35 laps. What percent of their goal is this?

Answers

Answer: 70%

Step-by-step explanation: To find the percent of their goal that Ivory ran, divide the number of laps they ran by their goal and multiply by 100. In this case, Ivory ran 35 / 50 * 100 = 70% of their goal.

What is the greatest common factor of 33 and 49

Answers

Answer:

1

Step-by-step explanation:

All factors of 33 : 1, 3, 11, 33

All factors of 49 : 1, 7, 49

So the Greatest Common Factor for 33 and 49 is 1

Please I need help and please show work rational function lots of points

Answers

your final answer is 2x/x-2 (see pic for work)

Look at the age-structure pyramids. The numbers between the bars (in the middle of the graphs) serve as the y-axis. What do these numbers represent?

Answers

Answer:Th numbers between the bars represents:

A) The age classes, in 5-year ranges

Explanation:

The age classes are indicated by the numbers between the bars, while the numbers within the bars show the popularity of each age group in millions.

Typically, a population pyramid like the one below does not display the number of births that occurred in a single year. However, by looking at the year the population pyramid was developed and deducting from it the corresponding ages shown in the pyramid, one can estimate this information.

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complete question:

Look at the age-structure pyramids. The numbers between the bars (in the middle of the graphs) serve as the y-axis. What do these numbers represent?

a) the age classes, in 5-year ranges

b) the number of people born in a particular year

c) the total population(in Million) of males and females

d) the percentage of the population in each age class.

Match each expression on the left with its quotient. Use number sense and estimation to help.

5.85 or 36 or 9.4 or 21.5

40.42 ÷ 4.3 ( Drag Here )

15.48 ÷ 0.72 ( Drag Here )

86.4 ÷ 2.4 ( Drag Here )

50.31 ÷ 8.6 ( Drag Here )

Answers

Answer:

40.42 ÷ 4.3 = 9.4

15.48 ÷ 0.72 = 21.5

86.4 ÷ 2.4 = 36

50.31 ÷ 8.6 = 5.85

Construct a venn diagram illustrating the sets below. U = {1,2,3,4,5,6,7,8,9} Y={1,3,4,6,7} Z={1,5,7}

Answers

Answer:

Step-by-step explanation:

Here is a Venn diagram illustrating the sets U, Y, and Z:

       Y        

  _____|_____

 |                      |

 |                      |

 |                      |

 |                      |

Z |     U             |

 |                      |

 |                      |

 |                      |

 |_____         _|

       |__    _|

            Z

In this diagram, the set U is represented by the large circle, the set Y is represented by the smaller circle inside U, and the set Z is represented by the smaller circle outside U. The region where the three circles overlap represents the intersection of all three sets. The region inside U but outside Y and Z represents the elements in U that are not in Y or Z. The region inside Y but outside U and Z represents the elements in Y that are not in U or Z. The region inside Z but outside U and Y represents the elements in Z that are not in U or Y. Finally, the region outside all three circles represents the elements that are not in any of the sets U, Y, or Z.

Mrs. Zollicoffer’s bank pays 5 1/4% interest. She has $1,000 in the bank. How much interest would she receive in one year?

Answers

The interest that Zollicoffer will receive in one year is $52.50.

How much interest would Zollicoffer receive in one year?

The formula that is used for calculating the interest will be:

Interest = principal × rate × time

In this case, Mrs. Zollicoffer’s bank pays 5 1/4% interest. She has $1,000 in the bank. The interest that she would receive in one year will be:

Interest = Principal × Rate × Time

Interest = 1000 × 5.25% × 1

Interest = $52.5

The interest is $52.50.

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On the coast of Oregon, mussels cover most of the rocky shoreline. Two mussel predators include Pisaster (ochre stars) and Nucella (whelks). A sixty-day removal study was conducted, and the results are presented in the graph. Which of the following conclusions is best supported by the data in the graph?

Answers

Because Pisaster is a keystone species, the proportion of living mussels was comparable to the control after Nucella removal.

Is the ochraceous Pisaster a keystone species?

Sea otters and sea gulls hunt for and eat Pisaster ochraceous. Its function as a keystone species has been well researched. When it was gone from Washington's intertidal regions, the area's species diversity declined.

Pisaster ochraceous: prey or predator?

Sea otters and sea gulls hunt for and eat Pisaster ochraceous. Its function as a keystone species has been well researched. When it was gone from Washington's intertidal regions, the area's species diversity declined.

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a coin is flipped 10 times how many outcomes will have exactly 4 tails and start and end with different faces

Answers

There are a total of 2^10 = 1024 possible outcomes for a coin flipped 10 times. Out of these, there are only 10 outcomes that have exactly 4 tails and start and end with different faces.

To count the number of outcomes with 4 tails, we can use the binomial coefficient formula: n choose k = n!/(k! * (n-k)!), where n is the total number of flips (10 in this case) and k is the number of tails (4 in this case). This gives us 10 choose 4 = 10!/ (4! * 6!) = 210 outcomes with 4 tails.

To count the number of outcomes that start and end with different faces, we can consider the first and last flips separately. The first flip can be either heads or tails and the last flip can also be either heads or tails, for a total of 2 * 2 = 4 possibilities.

Thus, there are a total of 210 * 4 = 840 outcomes that have exactly 4 tails and start and end with different faces. However, there are two outcomes (THTHTHTHTHT and TTHTHTHTHTH) that are counted twice in this total, so we need to subtract these from the total to get the correct number of outcomes. This gives us 840 - 2 = 838 outcomes.

Finally, we need to subtract the two outcomes that start and end with the same face (HHHHHHHHTH and THHHHHHHHH). This gives us a total of 838 - 2 = 836 outcomes.

Therefore, there are a total of 836 outcomes that have exactly 4 tails and start and end with different faces out of a total of 1024 possible outcomes.

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A food company sells its corn flakes in boxes of two different sizes: the regular box and the family value box. For the family value box, the length, width, and height of the box have all been increased by 20%.

Answers

The volume expression for the box is 1.728lwh and it means that the volume increases by 72.8%

How to determine the volume expression for the box?

The complete question is added at the end of this solution

From the question, we have the following parameters that can be used in our computation:

Length = l

Width = w

Height = h

The volume of a box can be calculated using

Volume = lwh

Rewrite the volume equation as

v = lwh

When the dimensions of the box are increased by 20%, we have the following expressions

Length = 1.2l

Width = 1.2w

Height = 1.2h

So, the new volume is

V = 1.2l * 1.2w * 1.2h

Evaluate

V = 1.728lwh

Hence, the expression is 1.728lwh

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A food company sells its corn flakes in boxes of two different sizes: the regular box and the family value box. For the family value box, the length, width, and height of the box have all been increased by 20%.

Determine the expression for the new volume

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