In response to market expectations, the credit pence r j been increased from 45 days to 60 days. This would result in

Related MCQs

• Increasing the credit period from 30 to 60 days, in response to a similar action taken by all of our competitors, would likely result in:
• Annual credit sales Rs. 4,00,000; Average collection period 45 days (assume 360 days in a year). What is Average debtors?
• A firm has inventory turnover of 6 and cost of goods sold is 7,50,000. With better inventory management, the inventory turnover is increased to 10. This would result in:
• The credit policy of Spurling Products is "1.5/10, net 35." At present 30% of the customers take the discount, 62% pay within the net period, and the rest pay within 45 days of invoice. What would receivables be if all customers took the cash discount?
• Credit Policy of a firm should involve a trade-off between increased
• Relaxed or libral credit implies -credit to customers
• 80% of sales of 10,00,000 of a firm are on credit. It has a Receivable Turnover of 8. What is the Average collection period (360 days a year) and Average Debtors of the firm?
• When the expansion of business and income is there, then the market value increases which result in ------------------
• Which asset-liability combination would most likely result in the firm's having the greatest risk of technical insolvency?
• A firm has EBIT of . 50,000. Market value of debt is . 80,000 and overall capitalization rate is 20%. Market value of firm under NOI Approach is: