Homework Answers
ROI per 20 day period
= 1.75/(100-1.75)
= 1.78% (Rounded to 2 decimal places)
Annual rate of return on investment
= 1.78% * 360/(30-10)
= 32.04%
= 32.0% (Rounded to 1 decimal place)
Add Answer to:
Annual credit sales of Nadak Co. total $336.6 million. The firm gives a 1.75% cash discount...
Annual credit sales of Nadak Co. total $336.6 million. The firm gives a 175% cash discount...
Annual credit sales of Nadak Co. total $336.6 million. The firm gives a 175% cash discount for payment within 10 days of the invoice date; 80% of Nadak's accounts receivable are paid within the discount period. Required: a. What is the total amount of cash discounts allowed in a year? (Enter your answer in millions rounded to 2 decimal places.) Total amount million b. Calculate the approximate annual rate of return on investment that Nadak Co.'s cash discount terms represent...
Tony Chang gives good customers a cash discount of 1.5% on any amount that they pay within 5 days of the invoice date. A...
Tony Chang gives good customers a cash discount of 1.5% on any amount that they pay within 5 days of the invoice date. An invoice for $1,890 was written on February 2. The customer paid $900 on February 6. Compute the amount that Tony must credit to his customer's account. (This problem involves the partial payment of an invoice within the discount period.) Round your answer to two decimal places. $ credited
The Malibu Corporation has annual credit sales of $34 million. The average collection period is 36...
The Malibu Corporation has annual credit sales of $34 million. The average collection period is 36 days. What is the average investment in accounts receivable as shown on the balance sheet? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Average receivables.
The Malibu Corporation has annual credit sales of $36 million. The average collection period is 38...
The Malibu Corporation has annual credit sales of $36 million. The average collection period is 38 days. What is the average investment in accounts receivable as shown on the balance sheet? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Average receivables.
Return to question 13 Bill Norman comes to you for advice. He has just purchased a...
Return to question 13 Bill Norman comes to you for advice. He has just purchased a large amount of inventory with the terms 2/15, n/45. The amount of the invoice is $325,000. He is currently short of cash but has decent credit. He can borrow the money needed to settle the account payable at an annual interest rate of 12 percent. Bill is sure he will have the necessary cash by the due date of the invoice but not by...
The income statement for Huerra Company for last year is provided below: Sales Less: Variable expenses...
The income statement for Huerra Company for last year is provided below: Sales Less: Variable expenses Total $38,000,000 22,800,000 Unit $380.00 228.00 Contribution margin Less: Fixed expense 15,200,000 7,600,000 152.00 76.00 Net operating income Less: Income taxes @ 30% 7,600,000 2,280,000 76.00 22.80 Net income $ 5,320,000 $ 53.20 The company had average operating assets of $19,000,000 during the year. Required: 1. Compute the company's ROI for the period using the ROI formula stated in terms of margin and turnover....
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...
Halloween, Inc., is considering a new product launch. The firm expects to have an annual operating...
Halloween, Inc., is considering a new product launch. The firm expects to have an annual operating cash flow of $8.4 million for the next 8 years. The discount rate for this project is 12 percent for new product launches. The initial investment is $38.4 million. Assume that the project has no salvage value at the end of its economic life. a. What is the NPV of the new product? (Do not round intermediate calculations and enter your answer in dollars,...
A firm offers terms of 2/15, net 45. a. What effective annual interest rate does the firm earn when a customer does not take the discount? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.
A firm offers terms of 2/15, net 45.a.What effective annual interest rate does the firm earn when a customer does not take the discount? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)b.What effective annual interest rate does the firm earn if the discount is changed to 3 percent? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)c.What effective annual interest rate...
A firm offers terms of 1/10, net 30. a. What effective annual interest rate does the...
A firm offers terms of 1/10, net 30. a. What effective annual interest rate does the firm earn when a customer does not take the discount? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What effective annual interest rate does the firm earn if the discount is changed to 2 percent? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places,...
Annual credit sales of Nadak Co. total $336.6 million. The firm gives a 175% cash discount for payment within 10 days of the invoice date; 80% of Nadak's accounts receivable are paid within the discount period. Required: a. What is the total amount of cash discounts allowed in a year? (Enter your answer in millions rounded to 2 decimal places.) Total amount million b. Calculate the approximate annual rate of return on investment that Nadak Co.'s cash discount terms represent...
The Malibu Corporation has annual credit sales of $34 million. The average collection period is 36 days. What is the average investment in accounts receivable as shown on the balance sheet? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Average receivables.
The Malibu Corporation has annual credit sales of $36 million. The average collection period is 38 days. What is the average investment in accounts receivable as shown on the balance sheet? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) Average receivables.
Return to question 13 Bill Norman comes to you for advice. He has just purchased a large amount of inventory with the terms 2/15, n/45. The amount of the invoice is $325,000. He is currently short of cash but has decent credit. He can borrow the money needed to settle the account payable at an annual interest rate of 12 percent. Bill is sure he will have the necessary cash by the due date of the invoice but not by...
The income statement for Huerra Company for last year is provided below: Sales Less: Variable expenses Total $38,000,000 22,800,000 Unit $380.00 228.00 Contribution margin Less: Fixed expense 15,200,000 7,600,000 152.00 76.00 Net operating income Less: Income taxes @ 30% 7,600,000 2,280,000 76.00 22.80 Net income $ 5,320,000 $ 53.20 The company had average operating assets of $19,000,000 during the year. Required: 1. Compute the company's ROI for the period using the ROI formula stated in terms of margin and turnover....
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...
Halloween, Inc., is considering a new product launch. The firm expects to have an annual operating cash flow of $8.4 million for the next 8 years. The discount rate for this project is 12 percent for new product launches. The initial investment is $38.4 million. Assume that the project has no salvage value at the end of its economic life. a. What is the NPV of the new product? (Do not round intermediate calculations and enter your answer in dollars,...
A firm offers terms of 1/10, net 30. a. What effective annual interest rate does the firm earn when a customer does not take the discount? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What effective annual interest rate does the firm earn if the discount is changed to 2 percent? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places,...
Most questions answered within 3 hours.
-
What would be the vapor pressure of water at 96°C above a
solution made by dissolving...
asked 12 minutes ago -
Hydration of norbornene
Write the reaction. Discuss the intermediate. Explain how the
equilibrium in the reaction...
asked 19 minutes ago -
While Dime Community Bank is based in Brooklyn; management has
decided to focus its lending activity...
asked 17 minutes ago -
Suppose that a party wanted to enter an FRA that expires in 42
days and is...
asked 19 minutes ago -
ABC Ltd. estimated that a new store requires an initial
investment of $800,000. This new store...
asked 20 minutes ago -
1. Review the Nike’s marketing strategy. You must include the
company’s target market, possible market segmentation,...
asked 32 minutes ago -
One of the major advantages of ______________ is to enhance
security for private networks by keeping...
asked 39 minutes ago -
Book:
Title: Framework for
Marketing Management, 15th edition
Author/s: Philip T.
Kotler, Kevin Lane Keller
1....
asked 47 minutes ago -
Given Uber’s recent corporate turbulence and ongoing
initiatives, provide a holistic situational analysis of the
environment...
asked 51 minutes ago -
A sculptor has hung up a 42.0 kg horizontal rod of length 4.80 m
. One...
asked 54 minutes ago -
What is the purpose of the 2' hydroxyl group in RNA? What is
the reason this...
asked 1 hour ago -
You currently have 20,000X ethidium bromide. You want to make
250 mL of 1X ethidium bromide...
asked 1 hour ago