Homework Answers
Answer is option C
C. 63.5%
Annual interest rate = (2/98)*(365/(25-10)) = 49.66%
Effective interest rate = (1 + i / m )m - 1
=((1+(49.66%/(365/15)))^(365/15)) - 1 = 63.5%
Add Answer to:
8 Dis Co is considering offering a discount of 2% to its customers if they pay...
7 The following information is available Cash Receivables Inventory 30,000 40,000 25,000 95,000 (10,000) 85.000 Payables...
7 The following information is available Cash Receivables Inventory 30,000 40,000 25,000 95,000 (10,000) 85.000 Payables Working Capital What is the quick (acid test) ratio? A 6.5 times B 8.5 times C 9.5 times D 7 times 2 marks Dis Co is considering offering a discount of 2% to its customers if they pay within 10 days rather than the current 25 days. There are 365 days in the year. What is the annual cost to Dis Co of offering...
8. Geo-M is considering adding a cash discount to its credit terms. If Geo-M offers 3/11...
8. Geo-M is considering adding a cash discount to its credit terms. If Geo-M offers 3/11 net 30 rather than its current net 30 policy, what annualized rate is the company charging customers who do not take the discount? Assume a 365-day year. 9. Fickle Sickles collects 15,000 checks per 365-day year with average amount $170 and total delay 5 days. A lockbox system would reduce that delay to 3 days, and it would also reduce FISI's check processing costs...
8. Geo-M is considering adding a cash discount to its credit terms. If Geo-M offers 3...
8. Geo-M is considering adding a cash discount to its credit terms. If Geo-M offers 3 / 11 net 30 rather than its current net 30 policy, what annualized rate is the company charging customers who do not take the discount? Assume a 365-day year.
Geo-M is considering adding a cash discount to its credit terms. If Geo-M offers 3/11 net...
Geo-M is considering adding a cash discount to its credit terms. If Geo-M offers 3/11 net 30 rather than its current net 30 policy, what annualized rate is the company charging customers who do not take the discount? Assume a 365-day year.
Geo-M is considering adding cash discount to its credit terms. If Geo-M offers 3/11 net 30...
Geo-M is considering adding cash discount to its credit terms. If Geo-M offers 3/11 net 30 rather than its current net 30 policy, what annualized rate is the company charging customers who do not take the discount? Assume a 365-day year.
7. Box Lock has annual sales of $4 million and is considering implementing a lockbox system,...
7. Box Lock has annual sales of $4 million and is considering implementing a lockbox system, which would reduce customer collection float by four days. Box Lock has a cost of capital of 13 percent. The annual after-tax cost of the lockbox system is $2000. Assume a 365-day year, should Box Lock implement the system? What would be the benefit, in dollar amount, if it did? 8. Geo-M is considering adding a cash discount to its credit terms. If Geo-M...
2A ENGR 314 2019(5 MAN B&W is considering offering a new dual-fueled engine to its customers. MAN...
2A ENGR 314 2019(5 MAN B&W is considering offering a new dual-fueled engine to its customers. MAN is may outsource the warranty service work for this engine, through a S-year contract basis or a 10-year license agreement. Alternatively MAN can do warranty service work using in-house personnel. Using the estimates provided by MAN below, perform an annual worth evaluation at 8% per year compounded annually to select the best option. Show the evaluation calculation for each option-then choose the best...
Cost of forgoing discount
To finance additional inventory, Arbutus Ltd. is considering forgoing the cash discount on all of its purchases currently offered on terms of 2/10, net 45. No payments will be stretched. Annual purchases are $9.21 million. a. Calculate the additional financing available to Arbutus Ltd. by forgoing the cash discount. (Use 365 days in a year. Do not round intermediate calculations. Enter answer in whole dollar, not in millions. Don't discount gross purchases to arrive at the accounts payable positions.) Additional financing available $ b. Calculate the annual...
Initiating a cash discount Gardner Company currently makes all sales on credit and offers no cash discount. The firm is...
Initiating a cash discount Gardner Company currently makes all sales on credit and offers no cash discount. The firm is considering offering a 4% cash discount for payment within 15 days. The firm's current average collection period is 60 days, sales are 40,000 units, selling price is $48 per unit, and variable cost per unit is $30. The firm expects that the change in credit terms will result in an increase in sales to 41,000 units, that 70% of the...
McEwan Industries sells on terms of 3/10, net 25. Total sales for the year are $812,000; 40% of the customers pay on the...
McEwan Industries sells on terms of 3/10, net 25. Total sales for the year are $812,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 78 days after their purchases. Assume 365 days in year for your calculations. What is the days sales outstanding? Round your answer to two decimal places. What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate calculations....
7 The following information is available Cash Receivables Inventory 30,000 40,000 25,000 95,000 (10,000) 85.000 Payables Working Capital What is the quick (acid test) ratio? A 6.5 times B 8.5 times C 9.5 times D 7 times 2 marks Dis Co is considering offering a discount of 2% to its customers if they pay within 10 days rather than the current 25 days. There are 365 days in the year. What is the annual cost to Dis Co of offering...
8. Geo-M is considering adding a cash discount to its credit terms. If Geo-M offers 3 / 11 net 30 rather than its current net 30 policy, what annualized rate is the company charging customers who do not take the discount? Assume a 365-day year.
7. Box Lock has annual sales of $4 million and is considering implementing a lockbox system, which would reduce customer collection float by four days. Box Lock has a cost of capital of 13 percent. The annual after-tax cost of the lockbox system is $2000. Assume a 365-day year, should Box Lock implement the system? What would be the benefit, in dollar amount, if it did? 8. Geo-M is considering adding a cash discount to its credit terms. If Geo-M...
2A ENGR 314 2019(5 MAN B&W is considering offering a new dual-fueled engine to its customers. MAN is may outsource the warranty service work for this engine, through a S-year contract basis or a 10-year license agreement. Alternatively MAN can do warranty service work using in-house personnel. Using the estimates provided by MAN below, perform an annual worth evaluation at 8% per year compounded annually to select the best option. Show the evaluation calculation for each option-then choose the best...
Initiating a cash discount Gardner Company currently makes all sales on credit and offers no cash discount. The firm is considering offering a 4% cash discount for payment within 15 days. The firm's current average collection period is 60 days, sales are 40,000 units, selling price is $48 per unit, and variable cost per unit is $30. The firm expects that the change in credit terms will result in an increase in sales to 41,000 units, that 70% of the...
Most questions answered within 3 hours.
-
Oxidative phosphorylation is achieved through chemiosmotic
coupling, which turns chemical energy into osmotic potential energy
that...
asked 2 hours ago -
Hollywood Shoes would like to maintain their cash account at a
minimum level of $64,000, but...
asked 2 hours ago -
Proteins CtrA-P, DnaA, and GcrA behave similarly to what
molecule in the Eukaryotic Cell Cycle?
asked 2 hours ago -
TRUE OR FALSE
In case of a competitive tender procedure, in the request for
quotation, the...
asked 2 hours ago -
I am a little behind please provide some explanation, will
provide thumbs up.
This question considers...
asked 2 hours ago -
Let say the utility function as U(X,Y) = lnX + Y. Show that the
marginal rate...
asked 2 hours ago -
A current of I=8.0A is flowing in a typical extension cord of
length L=3.00m. The cord...
asked 2 hours ago -
1. When balancing the equation H2SO4 (aq) + NaOH (aq) →
Na2SO4(aq) + H2O(aq), would you...
asked 3 hours ago -
Provide a definition of “classification hierarchy” and
illustrate your definition with an example of how and...
asked 2 hours ago -
1. Describe the four main green solvents. Provide one example of
the use of each solvent....
asked 2 hours ago -
International ethics focus on:
1) exploitation of labor
2)corruption
3) environmental impact
4) none of the...
asked 2 hours ago -
Costing Models You work for XYZ trucking and your boss has asked
you to figure out...
asked 2 hours ago