) Price Corp. is considering selling to a group of new customers and creating new annual...
) Price Corp. is considering selling to a group of new customers and creating new annual sales of $500,000. 3% will be uncollectible. The collection cost on these accounts is 6% of new sales, the cost of producing and selling is 76% of sales and the firm is in the 20% tax bracket. What is the profit on new sales?
60000
61128
62178
61287
Homework Answers
Sales = 500,000
(-) Collection cost (6% × 500,000) = (30,000)
(-) Selling cost (76% × 500,000) = (380,000)
(-) uncollectible (3% × 500,000) = (15,000)
Earnings before tax = 75,000
(-) Taxes(20% × 75,000) = (15,000)
Net Profit = $60,000
Add Answer to:
) Price Corp. is considering selling to a group of new customers
and creating new annual...
Price Corp. is considering selling to a group of new customers and creating new annual sales...
Price Corp. is considering selling to a group of new customers and creating new annual sales of $180,000. 4% will be uncollectible. The collection cost on these accounts is 2% of new sales, the cost of producing and selling is 76% of sales and the firm is in the 29% tax bracket. What is the profit on new sales?
Price Corp. is considering selling to a group of new customers and creating new annual sales...
Price Corp. is considering selling to a group of new customers and creating new annual sales of $120,000.3% will be uncollectible. The collection cost on all accounts is 3% of new sales, the cost of producing and selling is 76% of sales, and the firm is in the 18% tax bracket. What is the profit on new sales? Multiple Choice Ο Ο Ο Ο
Problem 7-17 Credit policy decision [LO7-4] Johnson Electronics is considering extending trade credit to some customers...
Problem 7-17 Credit policy decision [LO7-4] Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $110,000 if credit were extended to these new customers. Of the new accounts receivable generated, 5 percent will prove to be uncollectible. Additional collection costs will be 2 percent of sales, and production and selling costs will be 70 percent of sales. The firm is in the 10 percent tax bracket. a. Compute the incremental income...
Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although...
Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $234,000 in additional credit sales, 15 percent are likely to be uncollectible. The company will also incur $16,500 in additional collection expense. Production and marketing costs represent 70 percent of sales. The firm is in a 30 percent tax bracket and has a receivables turnover of four times. No other asset buildup will be required to service the new customers....
Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although...
Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $108,000 in additional credit sales, 8 percent are likely to be uncollectible. The company will also incur $15,800 in additional collection expense. Production and marketing costs represent 71 percent of sales. The firm is in a 30 percent tax bracket and has a receivables turnover of four times. No other asset buildup will be required to service the new customers....
Comiskey Fence Co. is evaluating extending credit to a new group of customers. Although these customers...
Comiskey Fence Co. is evaluating extending credit to a new group of customers. Although these customers will provide $468,000 in additional credit sales, 11 percent are likely to be uncollectible. The company will incur $17,700 in additional collection expenses Production and marketing expenses represent 76 percent of sales. The company has a receivables turnover of five times. No other asset buildup will be required to service the new customers. The firm has a 17 percent desired return on investment 6-1....
Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would...
Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $146,000 if credit is extended to these new customers. Of the new accounts receivable generated, 8 percent will prove to be uncollectible. Additional collection costs will be 6 percent of sales, and production and selling costs will be 72 percent of sales. The firm is in the 10 percent tax bracket. a. Compute the incremental income after taxes. Incremental income after taxes...
21. Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will...
21. Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $342,000 in additional credit sales, 13 percent are likely to be uncollectible. The company will also incur $17,100 in additional collection expense. Production and marketing costs represent 73 percent of sales. The firm is in a 35 percent tax bracket and has a receivables turnover of five times. No other asset buildup will be required to service the new...
Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would...
Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $250,000 if credit is extended to these new customers. Of the new accounts receivable generated, 7 percent will prove to be uncollectible. Additional collection costs will be 6 percent of sales, and production and selling costs ill be 70 percent of sales. The firm is in the 30 percent tax bracket a. Compute the incremental income after taxes. Incremental income after taxes...
Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would...
Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $150,000 if credit is extended to these new customers. Of the new accounts receivable generated, 5 percent will prove to be uncollectible. Additional collection costs will be 2 percent of sales, and production and selling costs will be 74 percent of sales. The firm is in the 35 percent tax bracket. a. Compute the incremental income after taxes. Incremental income after taxes...
Price Corp. is considering selling to a group of new customers and creating new annual sales of $120,000.3% will be uncollectible. The collection cost on all accounts is 3% of new sales, the cost of producing and selling is 76% of sales, and the firm is in the 18% tax bracket. What is the profit on new sales? Multiple Choice Ο Ο Ο Ο
Comiskey Fence Co. is evaluating extending credit to a new group of customers. Although these customers will provide $468,000 in additional credit sales, 11 percent are likely to be uncollectible. The company will incur $17,700 in additional collection expenses Production and marketing expenses represent 76 percent of sales. The company has a receivables turnover of five times. No other asset buildup will be required to service the new customers. The firm has a 17 percent desired return on investment 6-1....
Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $146,000 if credit is extended to these new customers. Of the new accounts receivable generated, 8 percent will prove to be uncollectible. Additional collection costs will be 6 percent of sales, and production and selling costs will be 72 percent of sales. The firm is in the 10 percent tax bracket. a. Compute the incremental income after taxes. Incremental income after taxes...
Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $250,000 if credit is extended to these new customers. Of the new accounts receivable generated, 7 percent will prove to be uncollectible. Additional collection costs will be 6 percent of sales, and production and selling costs ill be 70 percent of sales. The firm is in the 30 percent tax bracket a. Compute the incremental income after taxes. Incremental income after taxes...
Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $150,000 if credit is extended to these new customers. Of the new accounts receivable generated, 5 percent will prove to be uncollectible. Additional collection costs will be 2 percent of sales, and production and selling costs will be 74 percent of sales. The firm is in the 35 percent tax bracket. a. Compute the incremental income after taxes. Incremental income after taxes...
Most questions answered within 3 hours.
-
The correct answer will be upvoted with positive feedback,
giving me incorrect answers will result in...
asked 48 seconds ago -
Question:
Evaluation: Answer both (a) and (b): (a) Looking at
Table 6.1 in our text, explain...
asked 9 minutes ago -
What is the maximum number of edges that a graph on 7 vertices can
have if...
asked 31 minutes ago -
Question 05
(a) i) What are the three type of general defects in welding?
ii) Explain...
asked 15 minutes ago -
If the wage rate increases from $12 to $16 and, as a result, the
quantity demanded...
asked 21 minutes ago -
the slime layer external to the prokaryotic cell wall is called
the ?
asked 30 minutes ago -
Cheyenne Company must decide whether to make or buy some of its
components. The costs of...
asked 32 minutes ago -
What is the entropy change for mixing 1 liter of a monoatomic
ideal gas (call it...
asked 30 minutes ago -
A company that has 150 employees chooses a committee of 11 to
represent employee retirement issues....
asked 52 minutes ago -
the
force between two 2.11 x 10^-4 C charges that are 2.11 meters apart
is ______N?
asked 1 hour ago -
A truck of mass m slows from speed v0 to speed v in a
time t....
asked 52 minutes ago -
A 60kg box rests on a floor with a coefficient of kinetic
friction of 0.600 and...
asked 50 minutes ago