Given the Following Information, Calculate the Effective Gross Income Multiplier

question 2

Multiple Choice

Given the following information, calculate the effective gross income multiplier. Sale price: $950,000, Potential Gross Income: $250,000, Vacancy and Collection Losses: 15%, and Miscellaneous Income: $50,000.

• A) 0.36
• B) 0.30
• C) 2.8
• D) 3.6

Recognize the significance of liquid assets in a company’s inventory.

Understand different financial instruments associated with credit sales and purchases.

Grasp the economic order quantity (EOQ) model and its use in minimizing inventory costs.

Understand the effects of credit policy changes on customer payment behavior and firm finances.

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