3. Jane James owns an appliance store. She normally receives $50,000 worth of appliances per month. She does not like to owe people money and always pays her bills on the day she receives the invoice. Someone told her that if she delayed payment, she could actually increase her profit because the money would be earning interest in her account. She went through her bills and found that she actually had an additional ten days, on average to pay her invoices. She also found that she was earning 2 percent interest on the money she had in her money market savings account. If she delayed payment by the ten days, how much additional interest would she earn for the year?

3. Jane James owns an appliance store. She normally receives $50,000 worth of appliances per month. She does not like to owe people money and always pays her bills on the day she receives the invoice. Someone told her that if she delayed payment, she could actually increase her profit because the money would be earning interest in her account. She went through her bills and found that she actually had an additional ten days, on average to pay her invoices. She also found that she was earning 2 percent interest on the money she had in her money market savings account. If she delayed payment by the ten days, how much additional interest would she earn for the year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Is the following expense deductible: Data runs a computer servicing company. He purchases office supplies like paper, pens, invoice pads, coffee, break room materials, etc, monthly and expends all of them each month. His monthly costs are approximately 800.
( Explain well with proper answer) .
Lokalalo has plenty of customers, who because of the nature and price of the work these customers are typically given a month to pay for the work. At 31 August 2020, Lokalalo has $1,500,000 in accounts receivable. Lokalalo anticipates that 10% of their customers will default and not pay at all. You are a student studying BUS 114 and have been approached by Paulo Jr. the managing director to answer his following questions. What value will the accounts receivable (debtors) be recorded for in the balance sheet on 31 August and why?
Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances and APRS: Card 1, $4,700, 20%; Card 2, $5,800, 24%; and Card 3, $3,100, 17%. Interest compounds monthly on all loan balances. A credit card loan consolidation company has captured Mary's attention by stating they can save Mary 18% per month on her credit card payments. This company charges 15.5% APR. Is the company's claim correct? Assume a 10-year repayment period. Mary's current minimum monthly payments are $ Mary's minimum monthly payments after loan consolidation will be $[ Is the company's claim correct? Choose the correct answer below. (Round to the nearest cent.) (Round to the nearest cent.) O A. No because Mary's monthly credit card payments will decrease for less than 18%. OB. Yes because Mary's monthly credit card payments will decrease for more than 18%. OC. No because Mary's monthly credit card payments will…
Two friends, Savvy Sally and Debtie Debbie, decide to make Saturday special and plan a fun family dinner twice a month.. Sally packs a picnic lunch and spends every other Saturday in the park; that night, she deposits $100 in an online mutual fund savings account which pays 8% interest. Debbie takes her family out to eat every other Saturday and puts the charge of $100 on her credit card. Her credit card interest is 20% based on her credit score rating of "Prime". Part A: Based on the first scenario: Answer the following question utilizing the Future Value of an Annuity calculator: If Sally’s account compounds monthly, calculate how much Sally will have in her savings account: In 10 years? In 20 years In 30 years? In 40 years? Part B: Based on the second scenario: Answer the following question utilizing the Credit Card Interest Calculator: For just one year of spending $100 on dinner every other Saturday, how much would Debbie pay in interest for her credit card balance of…
Teresa's taco truck currently sells 2,500 tacos per day, for $6 each. Teresa estimates that, for each $1 she Increases the price of a taco, she will sell 300 less tacos per day (fewer people will want to buy if the price Increases). 1. How much money does Teresa currently make (total) per day? 2. How much revenue would she make If she Increased the price of a taco to $7 and she sold 300 fewer tacos? 3. Find a function that glves the quantity sold in terms of the price. (Hint, find two points and then find the linear equation between them.) 4. Find a function that models Teresa's revenue per day in terms of the price of a taco. (Hint: Revenue=quantity times price.) 5. Find the taco price and total revenue that maximizes revenue per day from taco sales. Round your answer(s) to the nearest cent.
Rebecca carries a balance on her credit card each month. Today is the first day of the new. 28-day billing cycle. The current balance is x and the APR is 24%. Rebecca is buying a friend an expensive gift that costs $1,400 that she plans to put on her credit card. This will be her only purchase this month. She will bemaking this purchase on the last day of the month. Part A if her finance charge will be $51 write and solve an equation to determine her current balance on her credit card show your work. Part B How much in finance charges can she save by making the purchase on the last day of the billing versus the first day of billing? Explain
susan sells jewelry. She gets a monthly salary plus commission on her sales. Her monthly salary is $680 and her commission rate is 7%. her sales for the month were 7,800 what is the monthly pay ?
Julie has a low credit rating, plus she was furloughed from her job 2 months ago. She has a new job starting next week and expects a salary to start again in a couple of weeks. Since she is a little short on money to pay her rent, she decided to borrow $100 from a loan company, which will charge her only $10 interest if the $110 is paid no more than 1 week after the loan is made. What are the: (Draw the Cashflow)(a) nominal annual and(b) effective annual intere
Phoebe realizes that she has charged too much on her credit card and has racked up $5,400 in debt. If she can pay $200 each month and the card charges 18 percent APR (compounded monthly), how long will it take her to pay off the debt?
Veronica Valentine works as a financial consultant as her sideline which earns her approximately 35,000 a month. She however, has a full time job as a supervisor in one of the big corporations in the City. Her full time job pays her 84,950 per month and has benefits like: rice allowance of 5,000 per quarter; uniform allowance of 8,000 per year; meal allowance of 70 pesos per day(she works 26 days a month); representation allowance of 8900 per month; communication allowance of 3,000 per month. The company pays 14' month pay @100% of her monthly pay and a 15* month pay which is 60% of her monthly pay. Given the above stated data,compute for her. a.Monthly take home pay. b.It was found that at the end of the year,Ms. Valentine has accumulated a total of 15 hours tardiness.With this data in mind,compute for her total income tax to be paid to the government considering both sources of income.
1. Lilibeth borrowed $1,200 from her aunt to buy a book. She promised to pay her after a month. Her aunt agreed, but she asked Lilibeth to pay her back the amount of $1,350. How much interest will she pay? What is the rate of interest she will pay?