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Could I get a full explanation as well as clarification as to whether it would move from US unit to Australian unit or the other
Could I get a full explanation as well as clarification as to whether it would move from US unit to Australian unit or the other way
The US-based parent firm of K9 Australia sells 500,000 units of backpacks to its Australian unit on a monthly basis, with the transfer price valued at AUD100/unit. The transfer price is increased to AUD110 at the same time that credit terms are extended from the current 30 days to 60 days. The new credit terms apply only to new sales. What is the net impact on cash flows for the first 90 days? Select one: a. Shift AUD 45 million from the Australian unit to the US unit b. Shift AUD 45 million from the US unit to the Australian unit C. Shift AUD 35 million from the Australian unit to the US unit d. Shift AUD 35 million from the US unit to the Australian unit e. Shift AUD 30 million from the US unit to the Australian unitStep by Step Solution
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