Quickbow Company Currently Uses Maximum Trade Credit by Not Taking

question 41

Multiple Choice

Quickbow Company currently uses maximum trade credit by not taking discounts on its purchases.Quickbow is considering borrowing from its bank,using notes payable,in order to take trade discounts.The firm wants to determine the effect of this policy change on its net income.The standard industry credit terms offered by all its suppliers are 2/10,net 30 days,and Quickbow pays in 30 days.Its net purchases are $11,760 per day,using a 360-day year.The rate on the notes payable is 10 percent and the firm's tax rate is 40 percent.If the firm implements the plan,what is the expected change in Quickbow's net income?

• A) −$23,520
• B) −$32,160
• C) +$23,520
• D) +$37,728
• E) +$62,880

Grasp the tax efficiency of different types of funds and its importance for investor decision-making.

Apply knowledge of fund characteristics to assess investment options for diversification purposes.

Analyze fund performance ratings and understand their implications for investors.

Understand how to interact with and navigate the Microsoft Access interface.

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Definitions:

Temporary Workers

Individuals employed for a limited period to fulfill short-term business needs, often without the expectation of long-term employment.

Labor Shortage

A situation where the demand for workers exceeds the supply within a particular industry or overall economy.

Revocability

The characteristic of being able to cancel, withdraw, or annul something previously granted or decided.

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house.