Global services is considering a promotional campaign that will increase annual credit sales by $470,000. the company will require investments in accounts receivable, inventory, and plant and equipment. the turnover for each is as follows: accounts receivable 5 times inventory 10 times plant and equipment 4 times all $470,000 of the sales will be collectible. however, collection costs will be 3 percent of sales, and production and selling costs will be 76 percent of sales. the cost to carry inventory will be 10 percent of inventory. depreciation expense on plant and equipment will be 20 percent of plant and equipment. the tax rate is 35 percent. a. compute the investments in accounts receivable, inventory, and plant and equipment based on the turnover ratios. add the three together.

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

answer/// there is an inverse relationship between price and quantity demanded;

credit history is used by lenders to determine whether you are a 'risky' person to give their money to.

having a short history provide very little data for the lenders. they wouldn't be able to determine your credit behavior from such a small samples. even if they are perfect.

having long credit history with few blemishes provide larger and more accurate data for the lenders to predict your credit behavior.