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Cash sales are more profitable. Cash is credited on the same day it's paid into the bank - earning interest from the moment it's deposited. Credit sales need to be cleared through the banks system which can take three working days from the day afterthe transaction occurred.
Sales create revenue and positive cash flow for a company. All companies must eventually have sales to be profitable. Sales are the driving force of revenue for an entity that has obligatory finances to be taken care of. More sales means(Well Profitable sales) sales that are over the monetary cost of the product or service are needed to pay overhead or operating costs. Please ask more intelligent questions!! Are you over 13 yrs. old?
That's exactly what they are doing and getting away with it.
A Sales Maximisation objective aims at increasing the cash value turnover/Sales Income/Revenue. Costs and expenses are not taken into account. Profit maximisation seeks to increase the bottom-line profit, regardless of sales or other considerations. Profit = sales less costs. If sales reduce, but if costs reduce by a greater amount, profit will increase. If sales are less in such a scenario, the work required to achieve sales may be less, so more profit is being made with less effort, which would be a good indicator of the organisation's efficiency and ability to trade successfully despite business challenges. Profits can also be increased by maintaining at costs at their present level, and increasing the selling price. Assuming that the volume of sales does not decrease, bottom-line profits will increase. Sales maximisation can be an valid objective if the sole aim is to increase market share or other related reasons. However, Sales Maximisation accompanied by ever-decreasing profits cannot be sustained indefinitely.
Yes, because the more something costs, the greater the sales tax.
Profit mean that when a company sales turnover more so extra income that we get is profit. Cash flow means inflow & outflow of cash when there is any expenses or income earned.
Tennessee's state sales tax is 7.0%. More sales tax can be added in certain cities and counties.
The cash operating cycle is a function of how quickly you pay your accounts payable, how quickly you sell your inventory, and how quickly you collect your sales (accounts receivable):Cash operating cycle = Average days' inventory + Average days' accounts receivable - Average days' accounts payable.To reduce the cash operating cycle:sell inventory more quickly,collect sales/accounts receivable more quickly orpay accounts payable more slowly.
Profit mean that when a company sales turnover more so extra income that we get is profit. Cash flow means inflow & outflow of cash when there is any expenses or income earned.
What would be the probable effect on a firm's cash position of the following events? a. Rapidly rising sales b. A delay in the payment of accounts payable c. A more liberal credit policy on sales (to the firm's customers) d. Holding larger inventories
A good way to increase the cash flow of your business is increase the sales of your product and also to simply raise the prices. In order to increase sales, you can get more advertisement. You can also hire workers who will work for less.
The percentage of sales tax that must be paid by businesses varies from state to state. Contact your state revenue department for more information.