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NEW QUESTION: 1
An entity plans to tighten its credit policy. The new policy will decrease the average number of days in collection from 75 to 50 days and will reduce the ratio of credit sales to total revenue from 70% to 60%. The entity estimates that projected sales will be 5% less if the proposed new credit policy is implemented. If projected sales for the coming year are US $50 million, calculate the dollar impact on accounts receivable of this proposed change in credit policy. Assume a 360-day year.
A. US $3,333,334 decrease
B. US $18,749,778 increase
C. US $3,817,445 decrease
D. US $6,500,000 decrease
Answer: A
Explanation:
If sales are US $50 million, 70% of which are on credit, total credit sales will be US $35 million. The receivables turnover equals 4.8 times per year 360 days - 75-day collection period). Receivables turnover equals net credit sales divided by average receivables. Accordingly, average receivables equal US $7,291.667 $35,000,000 - 4.8). Under the new policy, sales will be US $47.5 million 95% x $50,000,000), and credit sales will be US $28.5 million 60% x $47,500,000). The collection period will be reduced to 50 days, resulting in a turnover of 7.2 times per year 360 - 50). The average receivables balance will therefore be US $3,958,333 ($28,500,000 - 7.2), a reduction of US $3,333,334 $7,291.667 $3,958,333).
NEW QUESTION: 2
Pause at an appropriate place during a presentation can contribute to: (Select TWO)
A. Pronouncing words properly
B. Adding emphasis to a statement
C. Assessing learner's level of interest
D. Maintaining consistent behavior
E. Reviewing the material
Answer: B,C
Explanation:
Explanation/Reference:
Explanation:
NEW QUESTION: 3
What is a benefit of using a Cisco Wireless LAN Controller?
A. Central AP management requires more complex configurations
B. It supports autonomous and lightweight APs
C. It eliminates the need to configure each access point individually
D. Unique SSIDs cannot use the same authentication method
Answer: C
NEW QUESTION: 4
An engineer set up a multicast design using all three Cisco supported PIM modes. Which are two
characteristics of Bidirectional PIM in this situation are true? (Choose two.)
A. Bidirectional PIM is designed to be used for one-to-many applications.
B. Membership to a bidirectional group is signaled via explicit join messages.
C. In Bidirectional PIM, the RP IP address does not need to be a router.
D. In Bidirectional PIM, the RP IP address can be shared with any other router interface.
E. A Cisco router cannot support all three PIM modes simultaneously.
Answer: B,C
Explanation:
Explanation/Reference:
Reference: https://www.cisco.com/c/en/us/td/docs/ios/12_0s/feature/guide/fsbidir.html
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