Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Liberal credit policy

20/03/2021 Client: saad24vbs Deadline: 3 days

Week 6 – Credit Policy Decisions FIN200 Cooper Office Supplies is considering a more liberal credit policy in order to increase sales. The following data is available for the company:

Uncollectable New Accounts…………….. 8%

Collections Cost (% of new sales)………... 6%

Production and Selling Costs…………….. 77%

Accounts Receivable Turnover…………… 5

Income taxes………………………………. 34%

Expected increase in sales…………........... $78,000

a. What is the level of accounts receivable needed to support this sales expansion?

b. What would be Cooper's incremental income after tax on investment?

Added Sales……………………………………….. $78,000

Accounts uncollectible (8% of new sales)………… ($6,240)

Annual Incremental revenue…………………….… $71,760

Collection costs (6% of new sales)………………... ($4,680)

Production & selling costs (77% of new sales)……. ($60,060)

Annual income before taxes………………………… $7,020

Taxes (34%)……………………………………….... ($2,387)

Incremental Income after taxes……………………… $4,633

c. Should Cooper liberalize credit if a 15% after tax return on investment is required? Yes. The return on incremental investment is 29.7%, which exceeds the required 15%.

d. Assume Cooper also needs to increase its level of inventory to support new sales and that inventory turnover is 4 times. What would be the total incremental investment in accounts receivable and inventory to support the expected increase in sales?

e. Given the income determined in part B and the investment determined in part D, should Cooper extend more liberal credit terms? Determine and show answer in percentage amounts.

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Engineering Guru
Homework Tutor
Write My Coursework
Homework Guru
Finance Master
Assignment Guru
Writer Writer Name Offer Chat
Engineering Guru

ONLINE

Engineering Guru

You can award me any time as I am ready to start your project curiously. Waiting for your positive response. Thank you!

$61 Chat With Writer
Homework Tutor

ONLINE

Homework Tutor

I have read your project details. I can do this within your deadline.

$33 Chat With Writer
Write My Coursework

ONLINE

Write My Coursework

I have read and understood all your initial requirements, and I am very professional in this task.

$65 Chat With Writer
Homework Guru

ONLINE

Homework Guru

I will cover all the points which you have mentioned in your project details.

$52 Chat With Writer
Finance Master

ONLINE

Finance Master

You can award me any time as I am ready to start your project curiously. Waiting for your positive response. Thank you!

$24 Chat With Writer
Assignment Guru

ONLINE

Assignment Guru

Hello, I an ranked top 10 freelancers in academic and contents writing. I can write and updated your personal statement with great quality and free of plagiarism

$20 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Corporal punishment in queensland schools - Managing GCU Experience - Secl annual report 2019-20 - Discussion - Fisher lsd method - Carry on olivia holt sheet music - Disney supplier code of conduct - Hebel wall panel sizes - When was the italian national anthem written - Howard bank rising sun md - Examples of tension in poetry - Mcdonalds coffee ingredients pork - Manitou m30 4 manual - Consumer behavior case study answers - Current news - A history of the modern world palmer pdf - Exadata x7 2 datasheet - SMGT 501 - Analysis Paper Week 2 - BI A 1 - Why is the transportation industry cyclical in nature - Disaster's Impact - Jbf global pte ltd - Mcgraw hill connect sociology test answers - Epremis billing software - Hag seed and tempest - Benchmark - Mathematics Unit Plan ( NO plags) - 0922 - Perception - Information system management - Powermate m1 for sale - Introduction to organizational - Going on a bear hunt printables pdf - Hospitality & Tourism , assignment #3 - Info tts net pk - Emerging Threats and Counter measures - Split off method of joint cost accounting - Gloria anzaldua how to tame a wild tongue - Ktm industries green cell foam - Wuss bets simpsons - Dob in a tax cheat - Mazak tool eye parameters - Olive senior meditation on yellow - Why is shrove tuesday important - Sponges protostome or deuterostome - Origin of arabic script - Separation of powers texas constitution - Writing A Proposal - Case Analysis Seven - Brogden v metropolitan railway co - Code of conduct for employees in private organisations - Homework 1:Exercise - Ids 495 assignment - Present value of spousal support calculator - Alamo instructure - Complete health history assessment - Question answer Nursing Essay - Www sciencekids co nz sciencefacts earth rainforests html - Engineering assembly drawing examples - PICOT formation - Identify the three technologies that are reinventing the supply chain - C&c equipment rental hawley pa - Size 58 ring size - Erin brockovich movie answers - Ads b equipment manufacturers - Employee management system in c++ using class - Hemostasis case studies - Sdl threat modeling tool examples - Principles of Macroeconomics Pearson online lab - 99 luft balloons lyrics - Accenta change alarm code - Summarize 2 cases in 2 paragraphs - Bishopsgate motor finance v transport - Questionnaires Activity - Days of working capital capsim - 135 st vincent street port adelaide - Watts to db formula - Although beowulf was written in old english - Mr robinson neighborhood kill my landlord video - What greek myth inspired monteverdi's first opera? - Class in america gregory mantsios analysis - Mtc stage 1 - Heat exchanger problems thermodynamics - English writing - How to start page numbers on a specific page - Starbucks financial ratio analysis 2011 - Presto company makes radios that sell for - Vegaflex 81 2 wire manual - Wakefield coroner's court parking - Harvard global supply chain management simulation - Case study on human resource planning - Db 3 - Vce 2016 biology exam - Math statistics - Anys gowdie year of wonders - GLOBAL HEALTH - Cloud computing design patterns thomas erl pdf - Asc 605 25 multiple element arrangements - The danger of a single story worksheet answers - 1200 words please respond if you can complete in 8 hours - Cliff notes for warriors don t cry