Question

πιουτε τιπ Part 2A: Determine the Best Option for Homes Need Love Instructions: Calculate the following scenarios. Indicate which of the options are better, financially, for HNL Scenario 1 HNL received a $5,250 invoice dated 4/15/16 from Wall Art Direct. The $5,250 included $250 freight. Terms were 4/10, 3/30, n/60 Page 1 of 3 BUS 1158: Business Math Week 7 If HNL pays the invoice on April 27, what will it pay? Show your work in the space provided. If HNL pays the invoice on May 21, what will it pay? Show your work in the space provided.

Answer 1

Calculate the end of the 4% discount period
April 15 date of invoice + 10days = April 25 end of 4 % discount period
Calculate the end of the 3% discount period
April 15 date of invoice + 30days = May 15 end of 3 % discount period
Alternative - Pay April 27		Alternative - Pay May 21
Invoive Amount = $5,250		Invoive Amount = $5,250
Cash Discount 3%		Cash Discount 3%
Net amount to pay = $5,092.50		Net amount to pay = $5,092.50
In both the alternative will have to pay same amount