Blueroot Inc

question 23

Multiple Choice

Blueroot Inc.is considering a change in its financing policy.Currently,it uses maximum trade credit by not taking discounts on its purchases.The standard industry credit terms offered by all its suppliers are 2/10 net 30 days,and the firm pays on time.The new CFO is considering borrowing from its bank,using short-term notes payable,and then taking discounts.The firm wants to determine the effect of this policy change on its net income.Its net purchases are $11,760 per day,using a 365-day year.The interest rate on the notes payable is 10%,and the tax rate is 40%.If the firm implements the plan,what is the expected change in net income?

• A) $32,964
• B) $34,699
• C) $36,526
• D) $38,448
• E) $40,370

Comprehend the application of learning principles in conducting effective training.

Understand the evaluation process in the training cycle and its role in identifying further training needs.

Recognize various training methods and their appropriateness according to the training objectives and context.

Identify the role of technology and specific training methods like vestibule training in employee skill development.

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Definitions:

Consumer Surplus

The gap between the total price consumers are ready to pay for a good or service and what they actually spend on it.

Grapefruit

A citrus fruit known for its slightly bitter and sour taste, commonly used in juices, culinary dishes, and as a diet staple.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive, typically representing profits.

Producer Surplus

The split between the rate producers are willing to settle for a good or service and the rate they actually collect.