Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 06, 2024

Axis Industries has sales of 100K a/R of 11500 Customers 30 days to pay Industry average is 27 on 365 day year. If company changes

Axis Industries has

sales of 100K

a/R of 11500

Customers 30 days to pay

Industry average is 27 on 365 day year.

If company changes collections to have DSO fall to industry average and it earns 8% on any cash freed up by this change- how would that effect net income? Assume other things are constant.

Answer is 328.22 but I don't understand even how to set it up.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes

11th edition

9781259278617, 77861647, 1259278611, 978-0077861643

More Books

Students also viewed these Finance questions

Question

★★★★★

Newland Company reported retained earnings at December 31, 2016, of $310,000. Newland had 200,000 shares of common stock outstanding at the beginning of 2017. The following transactions occurred...

Answered: 1 week ago

Question

★★★★★

Determine the [OH ] and pH of a solution that is 0.140 M in F .

Answered: 1 week ago

Question

★★★★★

1. Review work of students often, and experiment with new groupings.

Answered: 1 week ago

Question

★★★★★

Curtis is 50 years old and has an individual retirement account (IRA) that contains substantial funds. His son, Curtis Jr., was accepted to Yale University upon graduating from high school. Curtis...

Answered: 1 week ago

Question

★★★★★

89. Which of the following steps in the performance reward plan model comes before the others listed? A set performance rewards C. identify performance measures 8. determine reward D. identify...

Answered: 1 week ago

Question

★★★★★

Savings: I'd like to save $100 each month. This will give me $1000 for a nice vacation next summer! Miscellaneous: I've budgeted about 5% of my total monthly budget to cover any unexpected expenses....

Answered: 1 week ago

Question

★★★★★

1. Mention and explain what the inventory control pyramid is. 2. What do the concepts of planning, checking and balance mean in the context of inventory control?

Answered: 1 week ago

Question

★★★★★

As you conduct an in-depth study into Part 139 this week, what strikes you as important or odd? What surprises you? Share with the class your thoughts on whether the regulation is comprehensive...

Answered: 1 week ago

Question

★★★★★

Given the following information, write the equation of a hyperbola. 14. Foci: (0, 8) and (0, -8); Vertices: (0, 7) and (0, -7) 15. Vertices: (6, 0) and (-6, 0); Foci: (61, 0) and (-61, 0) 16. Foci:...

Answered: 1 week ago

Question

★★★★★

Albiote Laboratories has invested in a high-performance centrifuge to treat blood samples received from clinics. In the first step of chemical purification, a technician places test tubes containing...

Answered: 1 week ago

Question

★★★★★

DOO (MA) A-9uga ni hworkz motay? 2.7m] 3.6[m]- ugi A 10 mundillup 2400[N]ot Tsono animated (A B D 2.7[m] E F 4.8[m] Figure-1 1) Determine reaction forces in supports E & F for frame shown in Figure...

Answered: 1 week ago

Question

★★★★★

Carol registered her daughter, Kristin, in an eligible physical activity program and paid the registration fee of $650 on January 5th of the current year. The program started on February 1st and...

Answered: 1 week ago

Question

★★★★★

A manufacturing cell has the theoretical capability to produce 30,000 stereo speakers per quarter. The conversion cost per quarter is $60,000. There are 5,000 production hours avail able within the...

Answered: 1 week ago

Question

★★★★★

Listed below are a number of Scorecard measures. Classify each measure according to the following: perspective (e.g., customer or learning and growth), financial or nonfinancial, sub jective or...

Answered: 1 week ago

Question

★★★★★

At the end of 1999, Zheng Enterprises implemented a low-cost strategy to improve its com petitive position. Its objective was to become the low cost producer in its industry. To lower costs, Zheng...

Answered: 1 week ago

Previous Question Next Question