Clayton Systems is a company that provides business-to-business products and services, generating over $3 billion in annual revenues. The following question pertains to Clayton Systems Financial Statements from fiscal years 2012 and 2013. In fiscal year 2013, Clayton had over $213 million of accounts receivable and $244 million in accounts payable on its balance sheet. In fiscal year 2014, if Clayton were to change its customers' terms of payments from Net 90 to Net 30, which of the following would be the most likely outcome on the balance sheet? OA) Accounts receivable would decrease OB) Accounts receivable would increase OC) Accounts payable would decrease OD) Accounts payable would increase
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- MC Corporation manufactures large-scale, high-performance computer systems. In a recent annual report, the balance sheet included the following information ($ in millions): 2015 2014 Current assets: Receivables, less allowances of $90 in 2015 and $72 in 2014 $ 3,977 $ 4,413 In addition, the income statement reported sales revenue of $24,704 ($ in millions) for the current year. All sales are made on a credit basis. The statement of cash flows indicates that cash collected from customers during the current year was $25,737 ($ in millions). Note that there could have been significant recoveries of accounts receivable previously written off. Required:1. Compute the following ($ in millions): The net amount of bad debts written off or reinstated by EMC during 2015. The amount of bad debt expense or reduction of bad debt expense that EMC included in its income statement for 2015. 2. Suppose that EMC had used the direct write-off method to account for bad…CornProducts Corporation ended the year 2018 with an average collection period of 40 days. The firm's credit sales for 2018 were $9 million. What is the approximate year-end 2018 balance in accounts receivable for Corn Products?Maggie's Muffins, Inc., generated $2,000,000 in sales during 2016, and its year-end total assets were $1,600,000. Also, at year-end 2016, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2017, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 3%, and its payout ratio will be 60%. How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate? Do not round intermediate steps. Round your answers to the nearest whole. Give typing answer with explanation and conclusion
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