Cost of not taking a cash discount = [Discount %/(100% − Discount %)] × [360/(Final due date − Discount period)]
a. Cost of lost discount = (3%/97%) × [360/(65 - 14)] = 21.83%
b. Cost of lost discount = (3%/97%) × [360/(45 - 23)] = 50.61%
c. Cost of lost discount = (4%/96%) × [360/(55 - 11)] = 34.09%
d. Cost of lost discount = (4%/96%) × [360/(145 - 18)] = 11.81%
Compute the cost of not taking the following cash discounts. (Use a 360-day year. Do not...
Compute the cost of not taking the following cash discounts. (Use a 360-day year. Do not round intermediate calculations. Input your final answers as a percent rounded to 2 decimal places.) Cost of Lost Discount Cost of Lost Discount a. 3/19, net 60. % b. 2/19, net 45. % c. 4/19, net 45. % d. 3/16, net 190. %
Compute the cost of not taking the following cash discounts. (Use a 360-day year. Do not round intermediate calculations. Input your final answers as a percent rounded to 2 decimal places.) Cost of Lost Discount a. 2'14, net 45 b. 219, nct 60 c. 4/19, net 45 d. 3/13, net 130
Compute the cost of not taking the following cash discounts (Use a 360-day year. Do not round intermediate calculations. Input your final answers as a percent rounded to 2 decimal places.) Cost of Lost Discount a. 2/13, net 50 b. 2/20, net 50 3/18, nel 65 d. 3/18, net 150 < Prev 13 of 25 III Next > MacBook Air ux 12 Xan BNIM
Regis Clothiers can borrow from its bank at 17 percent to take a cash discount. The terms of the cash discount are 3/19, net 45. a. Compute the cost of not taking the cash discount. (Use a 360-day year. Do not round intermediate calculations. Input your final answer as a percent rounded to 2 decimal places.) Cost of not taking a cash discount % b. Should the firm borrow the funds? Yes No
2. Cash discount. Compute the cost of not taking the following cash discounts. a. 2/10, net 40. b. 2/15, net 30. c. 2/10, net 45. d. 3/10, net 90.
Simmons Corp. can borrow from its bank at 17 percent to take a cash discount. The terms of the cash discount are 2.5/14, net 40. a. Compute the cost of not taking the cash discount. (Use a 360-day year. Do not round intermediate calculations. Input your final answer as a percent rounded to 2 decimal places.) Cost of not taking a cash discount.......% b. Should the firm borrow the funds? No Yes
Compute the following ratios: (Use a 360-day year. Do
not round intermediate calculations. Round your answers to 2
decimal places. Input your debt-to-total assets answer as a percent
rounded to 2 decimal places.)
The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,190,000, with 75 perc STUD CLOTHIERS Balance Sheet 20X1 Liabilities and Equity %24 Assets Accounts payable Cash 279,000 24,000 Accounts receivable Inventory Plant and equipment 283,000 266,000 450,000 Accrued taxes 107,000 130,000 Bonds...
Neveready Flashlights Inc. needs $350,000 to take a cash discount of 3/18, net 72. A banker wil dan the money for 54 days at an interest cost of $14,500 a. What is the effective rate on the bank loan? Use a 360-day year. Do not round Intermediate calculations. Input your answer as a percent rounded to 2 decimal places) Effective rate of interest b. How much would it cost in percentage terms) f the firm did not take the cash...
Harper Engine Company needs $638,000 to take a cash discount of 1.50/15, net 65. A banker will loan the money for 50 days at an interest cost of $16,800. a. What is the effective rate on the bank loan? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Effective rate of interest L % b. How much would it cost (in percentage terms) if Harper did not take the...
Harper Engine Company needs $634,000 to take a cash discount of 2.50/20, net 120. A banker will loan the money for 100 days at an interest cost of $14,700. a. What is the effective rate on the bank loan? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Effective rate of interest b. How much would it cost (in percentage terms) if Harper did not take the cash discount...