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I asked only one question, the follwing pictures are the excel, i need the empty spaces please. thank you This is the excell for the
I asked only one question, the follwing pictures are the excel, i need the empty spaces please. thank you
This is the excell for the question
this is Finace question under tightening credit terms
Kim Mitchell, the new credit manager of the Vinson Corporation, was alarmed to find that Vinson sells on credit terms of net 90 days while industry-wide credit terms have recently been lowered to net 30 days. On annual credit sales of $1.97 million, Vinson currently averages 95 days of sales in accounts recelvable. Mitchell estimates that tightening the credit terms to 30 days would reduce annual sales to $1,845,000, but accounts receivable would drop to 35 days of sales and the savings on investment in them should more than overcome any loss in profit. Assume that Vinson's variable cost ratio is 66%, taxes are 40%, and the interest rate on funds invested in receivables is 21% The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions above. 33 Should the change in credit terms be made? 34 Formulas 36 Changing Credit Policy Analysis: 37 Gross sales 38 Discounts 39 Net sales 40 Variable costs 41 Profit before credit costs and taxes 42 Credit-related costs: 43 Cost of carrying receivables 44 Bad debt losses 45 Profit before taxes 46 Taxes 47 Net income 48 49 Should the change in credit terms be made? 51 Step by Step Solution
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