Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 20 johnson electronic condengedendung de credit to

20 Johnson Electronic condengedendung de credit to some customers previously considered poor sales would by...

70.2K

Verified Solution

Question

Accounting

image
20 Johnson Electronic condengedendung de credit to some customers previously considered poor sales would by $220.000 fcretis extended to these new customers of the new accounts recevable generated. 10 percent will prove to be uncollectible Additional collection costs will be 5 percent of sales and production and sing costs will be 70 percent of Compute the incremental income before taves Incremental income before tres . What will the firm's incremental return on sales be it these new credit customers are accepted? (round the final awwer to 2 decimal place) Incremental return on sales c. If the receivable turnover ratio is 4 to 1 and no other asset buildup is needed to serve the new customers, what wil Johnson Electronics Incremental return on new average wivestment be? (Do round Intermediate calculations. Round the final answer to the nearest whole percentage) Incremental return on new average investment

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students