Suppose your firm receives a $4.34 million order on the last day of the year. You fill the order with $1.82 million worth of inventory. The customer picks up the entire order the same day and pays...


Suppose your firm receives a $4.34 million order on the last day of the year. You fill the order with $1.82 million worth of inventory. The customer picks up the entire order the same day and pays $1.17 million up front in cash; you also issue a bill<br>for the customer to pay the remaining balance of $3.17 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:<br>d. Inventory<br>e. Cash<br>a. Revenues<br>b. Earnings<br>c. Receivables<br>a. Revenues<br>Revenues will increase<br>by $<br>million. (Select from the drop-down menu and round to two decimal places.)<br>b. Earnings<br>Earnings will increase<br>by $ million. (Select from the drop-down menu and round to two decimal places.)<br>c. Receivables<br>Receivables will increase<br>by $<br>million. (Select from the drop-down menu and round to two decimal places.)<br>d. Inventory<br>Inventory will decrease by $<br>million. (Select from the drop-down menu and round to two decimal places.)<br>е. Cash<br>Cash will increase by $<br>million. (Select from the drop-down menu and round to two decimal places.)<br>

Extracted text: Suppose your firm receives a $4.34 million order on the last day of the year. You fill the order with $1.82 million worth of inventory. The customer picks up the entire order the same day and pays $1.17 million up front in cash; you also issue a bill for the customer to pay the remaining balance of $3.17 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: d. Inventory e. Cash a. Revenues b. Earnings c. Receivables a. Revenues Revenues will increase by $ million. (Select from the drop-down menu and round to two decimal places.) b. Earnings Earnings will increase by $ million. (Select from the drop-down menu and round to two decimal places.) c. Receivables Receivables will increase by $ million. (Select from the drop-down menu and round to two decimal places.) d. Inventory Inventory will decrease by $ million. (Select from the drop-down menu and round to two decimal places.) е. Cash Cash will increase by $ million. (Select from the drop-down menu and round to two decimal places.)

Jun 06, 2022
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