1. As a result of the changes in collection procedures, average accounts receivable balance will increase or (decrease) by a. (900,000)b. 90,000c. 900,000d. 32,400,000 2. To make the changes in collection procedures cost beneficial, the minimum savings in collection costs for the coming year should be a. 8,100b. 81,000c. 90,000d. 900,000 Problem 8. Persian Corporation is planning to introduce changes in its collection procedures. Thenew procedures are expected to make its collection longer by 10 days, although there will be achange in bad debts. For the coming year, Persian Corporation's budgeted sales is P32,400,000.Short term interest can be expected to be at an average of 9% per annum. (Use 360 days)

1. Option C . 900000 Explanation : Total Budgeted Sales is P32,400,000 Average Accounts Receivable…

Problem 8. Persian Corporation is planning to introduce changes in its collection procedures. The new procedures are expected to make its collection longer by 10 days, although there will be a change in bad debts. For the coming year, Persian Corporation's budgeted sales is P32,400,000. Short term interest can be expected to be at an average of 9% per annum. (Use 360 days)

Problem 8. Persian Corporation is planning to introduce changes in its collection procedures. The new procedures are expected to make its collection longer by 10 days, although there will be a change in bad debts. For the coming year, Persian Corporation's budgeted sales is P32,400,000. Short term interest can be expected to be at an average of 9% per annum. (Use 360 days)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Consider an uneven cash flow stream: Year Cash Flow 0 $2,000 1 $2,000 2 $0 3 $1,500 4 $2,500 5 $4,000 What is the present (Year 0) value of the cash flow stream if the opportunity cost rate is 10 percent? What is the value of the cash flow stream at the end of Year 5 if the cash flows are invested in an account that pays 10 percent annually? What cash flow today (Year 0), in lieu of the $2,000 cash flow, would be needed to accumulate $20,000 at the end of Year 5? (Assume that the cash flows for Years 1 through 5 remain the same.)
A new capital project requires a $1.000 decrease in inventories, a $2.500 increase in accounts receivables and a $1.800 decrease in accounts payables.What is the net cash inflow / outflow in net working capital?
a) How many possible rate of returns b) If the reinvestment ratec 15%, find the composite rate of return. Year 1 Net Cash Flow -10,000 +15,000 +5,000 -7,000
Calculate the internal rate of return for a $300.0m cash outflow at the end of year 0 and a $716.0m cash inflow at the end of year 5. 16% 20% 18.5% 19%
What is the termination cash flow (everything except the operational cash flow) at the end of year 5?
If the current account in a country has a deficit of 100.000.000 dollars and the financial account net balance is -120.000.000 dollars, what is the net error and omission when the official reserve changes are zero? A) 200,000,000 $ B) 120.000.000 $ C) 20.000.000 $ D) 40,000,000 $ E) 60.000.000 $
If the discounted Free Cash Flows for a company after two years of operating = $3500 . and the required rate of return = 10% Then the undiscounted cash flows would be :- Select one: a. 3181 b. 4235 C. 4658 d. 2629
Need help
Please do not give solution in image format thanku
Please solve
What amount of cash must be invested today in order to have $60,000 at the end of one year assuming the rate of return is 9%? (Do not round your PV factors.)A. $54,600.00B. $45,454.56 C. $55,045.88 D. $54,000.00
P3