menu
bartleby
search
close search
Hit Return to see all results
Subscribe
Sign in

Business
AccountingCornerstones of Financial Accounting4th Edition

close solutoin list
Chapter 5, Problem 80APSA
BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

Solutions

Chapter
Section
Problem 1DQ
Problem 2DQ
Problem 3DQ
Problem 4DQ
Problem 5DQ
Problem 6DQ
Problem 7DQ
Problem 8DQ
Problem 9DQ
Problem 10DQ
Problem 11DQ
Problem 12DQ
Problem 13DQ
Problem 14DQ
Problem 15DQ
Problem 16DQ
Problem 17DQ
Problem 18DQ
Problem 19DQ
Problem 20DQ
Problem 21DQ
Problem 22DQ
Problem 23DQ
Problem 1MCQ
Problem 2MCQ
Problem 3MCQ
Problem 4MCQ
Problem 5MCQ
Problem 6MCQ
Problem 7MCQ
Problem 8MCQ
Problem 9MCQ
Problem 10MCQ
Problem 11MCQ
Problem 12MCQ
Problem 13MCQ
Problem 14MCQ
Problem 15MCQ
Problem 16MCQ
Problem 17MCQ
Problem 18MCQ
Problem 19MCQ
Problem 20MCQ
Problem 21CE
Problem 22CE
Problem 23CE
Problem 24CE
Problem 25CE
Problem 26CE
Problem 27CE
Problem 28CE
Problem 29CE
Problem 30CE
Problem 31CE
Problem 32CE
Problem 33CE
Problem 34CE
Problem 35CE
Problem 36CE
Problem 37CE
Problem 38CE
Problem 39BE
Problem 40BE
Problem 41BE
Problem 42BE
Problem 43BE
Problem 44BE
Problem 45BE
Problem 46BE
Problem 47BE
Problem 48BE
Problem 49BE
Problem 50BE
Problem 51BE
Problem 52BE
Problem 53BE
Problem 54BE
Problem 55BE
Problem 56BE
Problem 57BE
Problem 58BE
Problem 59BE
Problem 60E
Problem 61E
Problem 62E
Problem 63E
Problem 64E
Problem 65E
Problem 66E
Problem 67E
Problem 68E
Problem 69E
Problem 70E
Problem 71E
Problem 72E
Problem 73E
Problem 74E
Problem 75E
Problem 76E
Problem 77E
Problem 78E
Problem 79APSA
Problem 80APSA
Problem 81APSA
Problem 82APSA
Problem 83APSA
Problem 84APSA
Problem 85APSA
Problem 86APSA
Problem 87APSA
Problem 88APSA
Problem 79BPSB
Problem 80BPSB
Problem 81BPSB
Problem 82BPSB
Problem 83BPSB
Problem 84BPSB
Problem 85BPSB
Problem 86BPSB
Problem 87BPSB
Problem 88BPSB
Problem 89.1C
Problem 89.2C
Problem 89.3C
Problem 90.1C
Problem 90.2C
Problem 90.3C
Problem 91C
Problem 92.1C
Problem 92.2C
Problem 93.1C
Problem 93.2C
Problem 94.1C
Problem 94.2C
Problem 95.1C
Problem 95.2C
Problem 95.3C
Problem 95.4C
Problem 95.5C
Problem 95.6C
Problem 95.7C
Problem 96.1C
Problem 96.2C
Problem 96.3C
Problem 96.4C
Problem 96.5C
Problem 96.6C
Problem 97.1C
Problem 97.2C
BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
1 views

Discount Policy and Gross Profit

Compton Audio sells MP3 players. During 2019, Compton sold 1,750 units at an average of $225 per unit. Each unit costs Compton $150. At present, Compton offers no sales discounts. Compton’s controller suggests that a generous sales discount policy would increase annual sales to 2,200 units and also improve cash flow. She proposes 5/10, n/30 and believes that 70% of the customers will take advantage of the discount.

Required:

1. If the controller is correct, determine how much the new sales discount policy would add to net sales and gross margin.

2. CONCEPTUAL CONNECTION Explain why the sales discount policy might improve cash flow.

To determine

(a)

Sales discounts:

The term 5/10,n/30 means that if a customer is paying in 10 days then the payment will be after a discount of 5% on the total value but if the customer is paying in 30 days then the payment will be made in full which means no discount.

To calculate:

The addition to the net sales and gross margin due to new discount policy.

Explanation

The Compton Audio sold MP3 players for $3,93,750(1750 units×$225 per unit) and cost of goods of sold is $2,62,500(1750 units×$150 per units) and offered the discount for the payment i.e. if it is received in 10 days and the discount for the early payment is 5%. It is estimated that due to this scheme, the sales will be increased to $4,95,000(2200 units×$225 per unit) and the new cost of goods of sold to $3,30,000(2200 units×$150 per units) and the payment of about 70% customers will be realized in the discount period. This is given in the question.

Increase in the sales revenue=Net Estimated Sales−Existing Sales={Sales Value−Discounts}−Existing Sales=${

To determine

(b)

Sales discounts:

The term 5/10,n/30 means that if a customer is paying in 10 days then the payment will be after a discount of 5% on the total value but if the customer is paying in 30 days then the payment will be made in full which means no discount.

To calculate:

The reason of improving the cash flow after providing discount policy.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution
arrow_back
Chapter 5,
Problem 79APSA
Chapter 5,
Problem 81APSA
arrow_forward

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 5 Solutions

Show all chapter solutions add
Ch-5 P-1DQCh-5 P-2DQCh-5 P-3DQCh-5 P-4DQCh-5 P-5DQCh-5 P-6DQCh-5 P-7DQCh-5 P-8DQCh-5 P-9DQCh-5 P-10DQ
Ch-5 P-11DQCh-5 P-12DQCh-5 P-13DQCh-5 P-14DQCh-5 P-15DQCh-5 P-16DQCh-5 P-17DQCh-5 P-18DQCh-5 P-19DQCh-5 P-20DQCh-5 P-21DQCh-5 P-22DQCh-5 P-23DQCh-5 P-1MCQCh-5 P-2MCQCh-5 P-3MCQCh-5 P-4MCQCh-5 P-5MCQCh-5 P-6MCQCh-5 P-7MCQCh-5 P-8MCQCh-5 P-9MCQCh-5 P-10MCQCh-5 P-11MCQCh-5 P-12MCQCh-5 P-13MCQCh-5 P-14MCQCh-5 P-15MCQCh-5 P-16MCQCh-5 P-17MCQCh-5 P-18MCQCh-5 P-19MCQCh-5 P-20MCQCh-5 P-21CECh-5 P-22CECh-5 P-23CECh-5 P-24CECh-5 P-25CECh-5 P-26CECh-5 P-27CECh-5 P-28CECh-5 P-29CECh-5 P-30CECh-5 P-31CECh-5 P-32CECh-5 P-33CECh-5 P-34CECh-5 P-35CECh-5 P-36CECh-5 P-37CECh-5 P-38CECh-5 P-39BECh-5 P-40BECh-5 P-41BECh-5 P-42BECh-5 P-43BECh-5 P-44BECh-5 P-45BECh-5 P-46BECh-5 P-47BECh-5 P-48BECh-5 P-49BECh-5 P-50BECh-5 P-51BECh-5 P-52BECh-5 P-53BECh-5 P-54BECh-5 P-55BECh-5 P-56BECh-5 P-57BECh-5 P-58BECh-5 P-59BECh-5 P-60ECh-5 P-61ECh-5 P-62ECh-5 P-63ECh-5 P-64ECh-5 P-65ECh-5 P-66ECh-5 P-67ECh-5 P-68ECh-5 P-69ECh-5 P-70ECh-5 P-71ECh-5 P-72ECh-5 P-73ECh-5 P-74ECh-5 P-75ECh-5 P-76ECh-5 P-77ECh-5 P-78ECh-5 P-79APSACh-5 P-80APSACh-5 P-81APSACh-5 P-82APSACh-5 P-83APSACh-5 P-84APSACh-5 P-85APSACh-5 P-86APSACh-5 P-87APSACh-5 P-88APSACh-5 P-79BPSBCh-5 P-80BPSBCh-5 P-81BPSBCh-5 P-82BPSBCh-5 P-83BPSBCh-5 P-84BPSBCh-5 P-85BPSBCh-5 P-86BPSBCh-5 P-87BPSBCh-5 P-88BPSBCh-5 P-89.1CCh-5 P-89.2CCh-5 P-89.3CCh-5 P-90.1CCh-5 P-90.2CCh-5 P-90.3CCh-5 P-91CCh-5 P-92.1CCh-5 P-92.2CCh-5 P-93.1CCh-5 P-93.2CCh-5 P-94.1CCh-5 P-94.2CCh-5 P-95.1CCh-5 P-95.2CCh-5 P-95.3CCh-5 P-95.4CCh-5 P-95.5CCh-5 P-95.6CCh-5 P-95.7CCh-5 P-96.1CCh-5 P-96.2CCh-5 P-96.3CCh-5 P-96.4CCh-5 P-96.5CCh-5 P-96.6CCh-5 P-97.1CCh-5 P-97.2C

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Conduct research on an ERP package other than SAP that would be suitable for a large organization (1 billion in...

Accounting Information Systems

Normal entries for accounts During the month, Gates Labs Co. has a substantial number of transactions affecting...

Corporate Financial Accounting

Effect on omitting adjusting entry The adjusting entry for accrued fees was omitted at October 31, the end of t...

Financial & Managerial Accounting

Financial statements from the end-of-period spreadsheet Bamboo Consulting is a consulting firm owned and operat...

Accounting

(Categories of Price Elasticity of Demand) For each of the following absolute values of price elasticity of dem...

ECON: MICRO4 (New, Engaging Titles from 4LTR Press)

Identify and briefly compare the two leading stock exchanges in the United States today.

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

CAPM AND REQUIRED RETURN Beale Manufacturing Company has a beta of 1.1, and Foley Industries has a beta of 0.30...

Fundamentals of Financial Management (MindTap Course List)

The circular-flow diagram illustrates that, in markets for the factors of production. a. households are sellers...

Principles of Microeconomics (MindTap Course List)

What does the invisible hand of the marketplace do?

Principles of Macroeconomics (MindTap Course List)

According to expectancy theory, what two variables determine motivation?

Foundations of Business (MindTap Course List)

A friend of mine is giving a dinner party. His current wine supply includes 8 bottles of zinfandel, 10 of merlo...

Probability and Statistics for Engineering and the Sciences

(Supply Shifters) List the five things that are held constant along a market supply curve, and identify the cha...

ECON MICRO

CAPM AND REQUIRED RETURN Beale Manufacturing Company has a beta of 1.1, and Foley Industries has a beta of 0.30...

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

Should an economic model describe reality exactly?

Principles of Economics (MindTap Course List)

Refer to the data set in Table 1.7. a. What is the average price for the cordless telephones? b. What is the av...

STATISTICS F/BUSINESS+ECONOMICS-TEXT

Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produ...

Brief Principles of Macroeconomics (MindTap Course List)

What might be some advantages and disadvantages to being let go remotely, if any? Why might it be a good idea t...

Essentials of Business Communication (MindTap Course List)

Lean principles for a restaurant The management of Daddy-Os fast-food franchise wants to provide hamburgers qui...

Financial And Managerial Accounting

What value does an automated asset inventory system have during risk identification?

Principles of Information Security (MindTap Course List)

Identify the key elements of the technology infrastructure required to successfully implement e-commerce within...

Principles of Information Systems (MindTap Course List)

Create a Crows Foot ERD to include the following business rules for the ProdCo company: a. Each sales represent...

Database Systems: Design, Implementation, & Management

What roles do the bridge, router, gateway, and switch play in a network?

Fundamentals of Information Systems

United Broke Artists (UBA) is a broker for not-so-famous artists. UBA maintains a small database to track paint...

Database Systems: Design, Implementation, & Management

Identify and briefly discuss several types of both guided and wireless communications.

Fundamentals of Information Systems

Use the Internet to find information about a data dictionary. Write a one-page paper that describes other types...

A Guide to SQL

What is (are) the major alloying element(s) of 6061 aluminum?

Precision Machining Technology (MindTap Course List)

What is an extranet and how is one used?

Principles of Information Systems (MindTap Course List)

Explain what is meant by pressure and stress and give examples from everyday life.

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

Repeat Problem 2.2 with the following results of a sieve analysis: 2.2 Following are the results of a sieve ana...

Fundamentals of Geotechnical Engineering (MindTap Course List)

Determine the maximum tensile, compressive, and shear stresses acting on the cross section of the tube at point...

Mechanics of Materials (MindTap Course List)

While discussing fuel tank filler pipes and caps: Technician A says that the threaded filler cap should be tigh...

Automotive Technology: A Systems Approach (MindTap Course List)

Assume that you are asked to recommend the professional credentials for certain roles in InfoSec at a larger or...

Management Of Information Security

Provide suggestions for reducing input volume.

Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)

Assume that a city of 50,000 people uses on the average 20 million m’ of natural gas per year. What fraction of...

Solid Waste Engineering

The system is a large ship and its contents. The inside of the ship and the air outside the ship are at the sam...

Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)

The two uniform cylinders, each of weight W, are resting against inclined surfaces. Neglecting friction, draw t...

International Edition---engineering Mechanics: Statics, 4th Edition

Grounding electrode system requirements for a utility-interactive photovoltaic system are found in section ____...

EBK ELECTRICAL WIRING RESIDENTIAL

What is meant by an open transition from start to run? Why is this condition objectionable at times when used w...

Electric Motor Control

Repeat Problem 2.4 with the following data. 2.4 The following are the results of a sieve analysis. a. Determine...

Principles of Geotechnical Engineering (MindTap Course List)

A bracket cut from a W12120 is connected to a W12120 column flange with 12 Group A bearing-type bolts as shown ...

Steel Design (Activate Learning with these NEW titles from Engineering!)

Technician A says diesel engines can be used in a hybrid powertrain. Technician B says a gasoline engine is nor...

Automotive Technology

List steps to import and export data between a spreadsheet and a database.

Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)

Use Castiglianos second theorem to determine the horizontal deflection at joint C of the frame shown in Fig. P7...

Structural Analysis

What unique characteristic of zero-day exploits make them so dangerous?

Network+ Guide to Networks (MindTap Course List)

bartleby
© bartleby 2019