Purple just sold Fred $4.9 billion of computer equipment. Fred immediately takes delivery and pays $1.6 billion in cash upon taking delivery; the remaining $3.3 billion is due n 30 days. Inventory associated with the order is $2.4. Ignore taxes. What is the impact of this transaction on: a. Revenues, b. Earnings, c. Receivables, d. Inventory, e. Cash Question content area bottom Part 1 a. Revenues change by $negative 3.3−3.3 billion. (Round to one decimal place. Use a negative sign for a decrease in value.) b. Earnings change by $enter your response here billion. (Round to one decimal place. Use a negative sign for a decrease in value.) c. Receivables change by $enter your response here billion. (Round to one decimal place. Use a negative sign for a decrease in value.) d. Inventory changes by $negative 9−9 billion. (Round to one decimal place. Use a negative sign for a decrease in value.) e. Cash changes by $enter your response here million. (Round to one decimal place. Use a negative sign for a decrease in value.)
Purple just sold Fred $4.9 billion of computer equipment. Fred immediately takes delivery and pays $1.6 billion in cash upon taking delivery; the remaining $3.3 billion is due n 30 days. Inventory associated with the order is $2.4. Ignore taxes. What is the impact of this transaction on: a. Revenues, b. Earnings, c. Receivables, d. Inventory, e. Cash Question content area bottom Part 1 a. Revenues change by $negative 3.3−3.3 billion. (Round to one decimal place. Use a negative sign for a decrease in value.) b. Earnings change by $enter your response here billion. (Round to one decimal place. Use a negative sign for a decrease in value.) c. Receivables change by $enter your response here billion. (Round to one decimal place. Use a negative sign for a decrease in value.) d. Inventory changes by $negative 9−9 billion. (Round to one decimal place. Use a negative sign for a decrease in value.) e. Cash changes by $enter your response here million. (Round to one decimal place. Use a negative sign for a decrease in value.)
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question
Purple just sold Fred
$4.9
billion of computer equipment. Fred immediately takes delivery and pays
$1.6
billion in cash upon taking delivery; the remaining
$3.3
billion is due n 30 days. Inventory associated with the order is
$2.4.
Ignore
taxes. What is the impact of this transaction on:a. Revenues, b. Earnings, c. Receivables, d. Inventory, e. Cash
Question content area bottom
Part 1
a. Revenues change by
$negative 3.3−3.3
billion. (Round to one decimal place. Use a negative sign for a decrease in value.)b. Earnings change by
$enter your response here
billion. (Round to one decimal place. Use a negative sign for a decrease in value.)c. Receivables change by
$enter your response here
billion. (Round to one decimal place. Use a negative sign for a decrease in value.)d. Inventory changes by
$negative 9−9
billion. (Round to one decimal place. Use a negative sign for a decrease in value.)e. Cash changes by
$enter your response here
million. (Round to one decimal place. Use a negative sign for a decrease in value.)Expert Solution
Step 1: Given data
| Particular | Amount ( In Billions ) | |
| A | Revenues | 4.9 |
| B | Earnings | - |
| C | Receivables | 3.3 |
| D | Inventory | 2.4 |
| E | Cash | 1.6 |
We have to calculate Earnings
Step by step
Solved in 3 steps
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