2 part Question. Please show work, thank you!
Quantitative
Problem: Adams Manufacturing Inc. buys $9.5 million of
materials (net of discounts) on terms of 2/10, net 50; and it
currently pays after 10 days and takes the discounts. Adams plans
to expand, which will require additional financing. If Adams
decides to forgo discounts, how much additional credit could it
obtain? Round your answer to the nearest cent. Do not round your
intermediate calculations. Use 365 day in a year.
$ _____
What would be the
nominal and effective cost of such a credit? Round your answer to 2
decimal places. Do not round intermediate calculations. Use 365 day
in a year.
Nominal cost: ____%
Effective cost: ____%
If the company could
receive the funds from a bank at a rate of 9.5%, interest paid
monthly, based on a 365-day year, what would be the effective cost
of the bank loan? Round your answer to 2 decimal places. Do not
round intermediate calculations.
______%
Should Adams use bank
debt or additional trade credit?
Answer Choices: The bank loan should be used OR Additional trade
credit should be used. SELECT ONE PLEASE
Quantitative Problem: Winston Inc. is trying to
determine the effect of its inventory turnover ratio and days sales
outstanding on its cash conversion cycle. Winston's 2015 sales (all
on credit) were $166,000 and its cost of goods sold was 75% of
sales. It turned over its inventory 8.3 times during the year. Its
receivables balance at the end of the year was $13,107.57 and its
payables balance at the end of the year was $7,404.72. Using this
information calculate the firm's cash conversion cycle. Round your
answer to the nearest whole. Round the days amounts in your
intermediate calculations to the nearest whole day. Do not round
other intermediate calculations.
_____ days?
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2 part Question. Please show work, thank you! Quantitative Problem: Adams Manufacturing Inc. buys $9.5 million...
Quantitative Problem: Adams Manufacturing Inc. buys $8.5 million of materials (net of discounts) on terms of 2/10, net 50; and it currently pays after 10 days and takes the discounts. Adams plans to expand, which will require additional financing. If Adams decides to forgo discounts, how much additional credit could it obtain? Assume 365 days in year for your calculations. Do not round intermediate calculations. Round your answer to the nearest cent. $ What would be the nominal and effective...
Quantitative Problem: Adams Manufacturing Inc. buys $9.2 million of materials (net of discounts) on terms of 2/10, net 50; and it currently pays after 10 days and takes the discounts. Adams plans to expand, which will require additional financing. If Adams decides to forgo discounts, how much additional credit could it obtain? Round your answer to the nearest cent. Do not round your intermediate calculations. Use 365 day in a year. $ What would be the nominal and effective cost...
Quantitative Problem: Adams Manufacturing Inc. buys $10.4 million of materials (net of discounts) on terms of 2/10, net 60; and it currently pays after 10 days and takes the discounts. Adams plans to expand, which will require additional financing. If Adams decides to forgo discounts, how much additional credit could it obtain? Round your answer to the nearest cent. Do not round your intermediate calculations. Use 365 day in a year. $ What would be the nominal and effective cost...
I need help as soon as possible thank you. Adams Manufacturing Inc. buys $9.9 million of materials (net of discounts) on terms of 2/10, net 50; and it currently pays after 10 days and takes the discounts. Adams plans to expand, which will require additional financing. If Adams decides to forgo discounts, how much additional credit could it obtain? Round your answer to the nearest cent. Do not round your intermediate calculations. Use 365 day in a year. $ What...
15.03 COST OF TRADE CREDIT AND BANK LOAN Lancaster Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 55; and it currently pays on the 5th day and takes discounts. Lancaster plans to expand, which will require additional financing. Assume 365 days in year for your calculations. If Lancaster decides to forgo discounts, how much additional credit could it obtain? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round...
COST OF TRADE CREDIT AND BANK LOAN Lancaster Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 35; and it currently pays on the 5th day and takes discounts. Lancaster plans to expand, which will require additional financing. Assume 365 days in year for your calculations. If Lancaster decides to forgo discounts, how much additional credit could it obtain? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your...
COST OF TRADE CREDIT AND BANK LOAN Lancaster Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 30; and it currently pays on the 5th day and takes discounts. Lancaster plans to expand, which will require additional financing. Assume 365 days in year for your calculations. If Lancaster decides to forgo discounts, how much additional credit could it obtain? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your...
COST OF TRADE CREDIT AND BANK LOAN Lancaster Lumber buys 58 million of materials (net of discounts) on terms of 3/5, net 70, and it currently pays on the 5th day and takes discounts, Lancaster plans to expand, which will regure additional financing. Assume 365 days in year for your calculations a. If Lancaster decides to forgo discounts, how much additional credit could your answer to the nearest cent. obtain? Write out your answer completely. For example, 5 million should...
Lancaster Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 50; and it currently pays on the 5th day and takes discounts. Lancaster plans to expand, which will require additional financing. Assume 365 days in year for your calculations. If Lancaster decides to forgo discounts, how much additional credit could it obtain? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Do not round intermediate calculations. Round your answer to...
COST OF TRADE CREDIT AND BANK LOAN Lancaster Lumber buys $8 million of materials (net of discounts) on terms of 3/5, net 65; and it currently pays on the 5th day and takes discounts. Lancaster plans to expand, which will require additional financing. Assume 365 days in year for your calculations. a. If Lancaster decides to forgo discounts, how much additional credit could it obtain? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round...