An increase in inventories of $500 and a decrease in the bank balance of $600 and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
An increase in inventories of $500 and a decrease in the bank balance of $600 and an increase in payables of $1,400 results in: A. A decrease in working capital of $1,500 B. An increase in working capital of $1,500 C. A decrease in working capital of $1,300 D. An increase in working capital of $1,300 The turnover of a company was $4 million and its receivables were 7.5% of turnover. The company wishes to have an allowance of 3% of receivables, which would result in an increase of 25% of the current allowance. What figure would appear in the income statement for bad debts? An increase in inventories of $500 and a decrease in the bank balance of $600 and an increase in payables of $1,400 results in: A. A decrease in working capital of $1,500 B. An increase in working capital of $1,500 C. A decrease in working capital of $1,300 D. An increase in working capital of $1,300 The turnover of a company was $4 million and its receivables were 7.5% of turnover. The company wishes to have an allowance of 3% of receivables, which would result in an increase of 25% of the current allowance. What figure would appear in the income statement for bad debts?
Expert Answer:
Answer rating: 100% (QA)
The answer is A A decrease in working capital of 1500 The working c... View the full answer
Related Book For
Essentials of Entrepreneurship and Small Business Management
ISBN: 978-0133849622
8th edition
Authors: Norman M. Scarborough, Jeffrey R. Cornwall
Posted Date:
Students also viewed these computer network questions
-
Explain your stance on whether companies should be allowed to test employees for drugs.
-
Do you think organizations should be allowed to investigate applicants credit histories in the hiring process? Why or why not?
-
Management should be allowed to hire replacement workers immediately after a strike.
-
Raheem & Co. purchased a fixed asset on 1.4.2018 for Rs.2,50,000. Depreciation is to be provided @10% annually according to the Straight-line method. The books are closed on 31st March every year....
-
How does the computation of the financing component differ when delivery is before and after the payment?
-
Refer to the Electrical Engineering (Vol. 95, 2013) study of the power quality (sags and swells) of a transformer, Exercise 2.76 (p. 86). For transformers built for heavy industry, the distribution...
-
The variation of free energy with pressure at constant temperature is (a) \(G_{1}-G_{2}=n R T \ln \frac{P_{2}}{P_{1}}\) (b) \(G_{2}-G_{1}=n R T \ln \frac{P_{2}}{P_{1}}\) (c) \(G_{2}-G_{1}=n R T \ln...
-
As a part of the audit of Ren Gold Manufacturing Company, a nonpublic company, management requests basic financial statements and separately, the same basic financial statements accompanied by...
-
Tatum Company has four products in its inventory. Information about ending inventory is as follows: Total Net Realizable Value Total Replacement Product Total Cost 101 $ 129,000 Cost $ 118,100 $...
-
Lunatics, an e-commerce sports company wants to buy Rowdy Trading Cards at a cost of $504 million. Rowdy will operate for 20 years. They expect annual cash flows from operations to be $70.1 million...
-
4. Which of the following methods is the simplest heat-related method to sterilize metal? a. Incineration b. Autoclaving c. Direct flaming d. Indirect heating 5. Boiling items in water for minutes...
-
3.Based on your example in question 2, could that communication problem be fixed if one of the rules/recommendations in the video were followed? Which one? Why and how could it have been fixed? Have...
-
Is there systemic racism in the United States Criminal Justice System (or in other nations as well), or are we dealing with a few individual racists who happen to work in the criminal justice system?
-
When determining if a professional structural designer has breached its duty of care, how would the courts establish the standard expected? How then would the courts determine of the individual had...
-
1. Which of the following is a deterrent control? A. Authorized Personnel Only sign B. Backups C. User training D. Log monitoring 2. Which of the following is an operational control? ...
-
Julie is HIM director at Southwest Hospital. She is served with a subpoena duces tecum, directing her to appear at the law offices of Frank Powers, Attorney at Law, for a deposition that will take...
-
Macintyre says "the distinction between civil and criminal law is fundamental to English Law" with reference to this statement discuss the various differences between civil and criminal law. ?
-
In Exercises 105108, evaluate each expression without using a calculator. log(ln e)
-
List some possible sources of market information for an entrepreneur.
-
Define the marketing plan. What lies at its center?
-
Describe how a small business owner could use an emphasis on speed for a competitive advantage.
-
Identify at least four methods by which investors and/or the entrepreneur in a new venture can harvest their investment in a new venture. Describe the costs and benefits of each, and provide a...
-
What are the key distinctions between corporate finance and entrepreneurial finance?
-
Explain what underpricing is and review the various explanations for why it might occur. How does underpricing figure into the cost of going public?
Study smarter with the SolutionInn App