Suppose your firm receives a $5.94 million order on the last day of the year. You fill the order with $1.91 million worth of inventory. The customer picks up the entire order the same day and pays $1.02 million up front in cash; you also issue a bill for the customer to pay the remaining balance of $4.92 million within 40 days. Suppose your firm's tax rate is 0% (i.e., ignore taxes). Determine the consequences of this transaction for each of the following: a. Revenues b. Earnings c. Receivables a. Revenues Revenues will by S d. Inventory e. Cash million. (Select from the drop-down menu and round to two decimal places.)

Suppose your firm receives a $5.94 million order on the last day of the year. You fill the order with $1.91 million worth of inventory. The customer picks up the entire order the same day and pays $1.02 million up front in cash; you also issue a bill for the customer to pay the remaining balance of $4.92 million within 40 days. Suppose your firm's tax rate is 0% (i.e., ignore taxes). Determine the consequences of this transaction for each of the following: a. Revenues b. Earnings c. Receivables a. Revenues Revenues will by S d. Inventory e. Cash million. (Select from the drop-down menu and round to two decimal places.)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 9E

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