A manufacturer offers credit terms of 2/10, net 30, but a business consistently pays after 45 days. Use a 365-day year. Calculate the effective cost of trade credit.
Q: I want to this question answer general Accounting
A: Step 1: Define NOPATNet operating profit after tax is the net income of the company if the company…
Q: Hi teacher please help me this question general accounting
A: Step 1: Define Price Earning RatioWe can determine if a particular stock is selling at a higher…
Q: I don't need ai answer general accounting question
A: Step 1: Definition of Gain or Loss on DisposalThe gain or loss on disposal of an asset is calculated…
Q: During that same period?
A: Step 1: Accounting equation Assets = Liabilities + EquityLiabilities = Assets - Equity Change in…
Q: TOKYO ended the year with an inventory of $935,000. During the year, the firm purchased $6,378,000…
A: Explanation of Cost of Goods Sold (COGS):Cost of Goods Sold (COGS) represents the direct costs…
Q: What are the direct materials price variance?
A: Step 1: Formula Direct materials price variance = (Actual price - Standard price ) x Actual quantity…
Q: ?
A:
Q: Sales returns account at the end of 2013 ?
A: Step 1:Bad debts is the amount that cannot be recovered from the credit sales. When the goods are…
Q: What is the firm's price earnings ratio? General accounting
A: Step 1: Define Price Earning RatioWe can determine if a particular stock is selling at a higher…
Q: The lower of cost or net realizable value rule is an application of ?(a) Matching principle (b)…
A: Concept of Conservatism PrincipleThe conservatism principle emphasizes caution in financial…
Q: General Accounting Question need help
A: Step 1: Definition of Total Cost to Be Accounted ForUnder the weighted-average method, the total…
Q: General accounting
A: To calculate Free Cash Flow (FCF), we use the formula:FCF=NOPAT+Depreciation−Capital Expenditures…
Q: Please provide this question solution
A: Step 1: Definition of Absorption CostingAbsorption costing is a method where all manufacturing…
Q: Do fast answer of this accounting questions
A: Step 1: Definition of Contribution MarginThe contribution margin is the amount remaining from sales…
Q: General accounting
A: Step 1: Analysis of the information givenRevenues = $72,000Expenses = $65,000Dividends of $4,200 are…
Q: Subject - General account
A: The correct answer is:b. LIFO (Last-In, First-Out) Explanation:In a period of deflation (where the…
Q: Need Accounting answer NO AI USE FOR YOUR KIND INFORMATION
A: To calculate the cost of direct materials used during 2016, use the following formula: Cost of…
Q: Financial Accounting Question need help
A: Step 1: Define Gain or Loss on Sale of EquipmentThe gain or loss on the sale of equipment is…
Q: The difference between the actual fixed manufacturing overhead cost and the budgeted fixed…
A: The correct answer is:a. fixed overhead spending variance. Explanation:The difference between the…
Q: Please solve this question general accounting
A: Step 1: Contribution margin per unit.= selling price per unit - variable cost per unit= 75 - 45= 30…
Q: What was the firm's free cash flow??
A: The question requires the determination of the firm's free cash flow. Free cash flow (FCF)…
Q: Singh Company plans to sell 9,200 purple lawn chairs during May, 7,300 in June, and 9,200 during…
A: Definition of Production Calculation Based on Sales and Ending Inventory:Production requirements are…
Q: Share-based payment transactions settled in equity are ? a) Measured at grant date fair value b)…
A: Concept of Grant Date Fair ValueThe grant date fair value refers to the valuation of equity…
Q: Hello tutor please provide this question solution general accounting
A: Step 1: Definition of Manufacturing CostsThe Total Manufacturing Cost includes the sum of direct…
Q: Expert of general account please solve. asap.
A: Step 1:First calculate the total cost incurred during the current month: Total cost incurred =…
Q: Global office supply uses the retail method to estimate ending inventory in its monthly financial…
A: Step 1: Overview of the DataGiven:Inventory (July 1):Cost = $274,800Retail = $546,000Net…
Q: What is the gross profit on this watch?
A: Step 1: Definition of Gross ProfitGross Profit refers to the profit a company makes after deducting…
Q: A firm's balance sheet shows the following: Assets $ 5,00,000 Liabilities $ 6,00,000 Shareholder's…
A: The retained profit or loss for the firm can be calculated using the basic accounting…
Q: Quick answer of this accounting questions
A: Step 1: Definition of Earnings Per Share (EPS)Earnings Per Share (EPS) is a measure of a company's…
Q: Richard Inc. expects to sell 28,000 units. Each unit requires 4 pounds of direct materials at $15…
A: Step 1: Understand the FormulaThe formula to calculate planned production is: Planned…
Q: In determining the market value of ending inventory, which of the following is NOT considered as a…
A: The correct answer is:d) Selling price without any adjustments. Explanation:In determining the…
Q: Need help
A: Step 1: Define Unrealized Inventory ProfitUnrealized inventory profit arises when goods are…
Q: cost account. find answer. Asap.
A: To calculate the difference in net income between FIFO and LIFO, we first need to compute the cost…
Q: General Account
A: To calculate the percentage rate of return on pension plan assets, we use the formula: Rate of…
Q: General accounting
A: Step 1: Identify the Key Variables Price per Share: $50Dividend per Share: $2.50Expected Total…
Q: Contribution margin rate solve this accounting questions
A: Step 1: Definition of Contribution Margin RateThe Contribution Margin Rate is the percentage of…
Q: Quick answer of this accounting questions
A: Step 1: Definition of Full CostingFull costing, also known as absorption costing, allocates all…
Q: Financial Accounting Question please answer
A: Step 1: Formula Quick ratio = Quick assets/ Current liabilitiesQuick ratio = (Cash + Accounts…
Q: Kindly help me with general accounting question
A: Step 1: Define Contribution MarginContribution margin refers to the amount remaining from sales…
Q: I need this question answer general Accounting
A: Step 1: Define High-low MethodHigh-low method is the easiest method of computing the variable and…
Q: A manufacturing company applies factory overhead based on direct labor hours. At the beginning of…
A: Explanation of Factory Overhead: This represents all manufacturing costs that cannot be directly…
Q: Star Electronics has aging accounts receivable as follows: Current ($50,000), 1-30 days ($30,000),…
A: Concept of Aging Accounts ReceivableAging accounts receivable is a method used to categorize…
Q: Provide correct answer general Accounting
A: Step 1: Define Profit MarginProfit margin is the percentage of the gain generated from the…
Q: How many dollars worth of sales are generated?
A: Given values:Working Capital = $980Current Liabilities = $1,340Net Fixed Assets = $4,418Sales =…
Q: What is the number of workdays in an order cycle?
A: FEEL FREE TO ASK FOR CLARIFICATIONS
Q: Please answer the general accounting question
A: The net income for the year is computed by deducting expenses from revenue.Net income = Revenue -…
Q: I won't to this question answer general accounting question
A: Step 1: Define Negative Balance of Cash FlowsThe net cash flow from an activity (in the cash flow…
Q: A college's food operation has an average meal price of $9.20. Variable costs are $4.35 per meal and…
A: FEEL FREE TO ASK FOR CLARIFICATIONS
Q: Sub: accounting
A: Step 1: Calculation of Net IncomeNet Income = Annual Sales × Profit MarginNet Income = $415,200 ×…
Q: Please give me answer general accounting question
A: Step 1: Define Bad DebtBad debt can be defined as the account receivable that is unrecoverable for…
Get correct answer accounting questions
Step by step
Solved in 2 steps
- A company buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 35 days after the invoice date. Net purchases amount to P720,000 per year. What is the nominal annual cost of its non-free trade credit? (Assume a 365-day year.) Show your complete solution.3) A large retailer obtains merchandise under the credit terms of 3/10, net 30, but routinely takes 50 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's effective cost of trade credit? Assume a 365-day year. Do not round intermediate calculations. Round your answer to two decimal places. %Round House Furniture offers credit to its customers at a rate of 1.15 percent per month. What is the effective annual rate (EAR) on this credit offer? Can the calculator and excel solution be provided?
- What is the effective annual percentage cost of its non-free trade credit?Hail and Sons operates for 240 days in a year. It has been offered credit terms of 4/30 net 90 days. What will be the nominal annual percentage cost if it is non-free trade credit?Harper Corp.'s sales last year were $395,000, and its year-end receivables were $42,500. Harper sells on terms that call for customers to pay 30 days after the purchase, but many delay payment beyond Day 30. On average, how many days late do customers pay? Base your answer on this equation: DSO - Allowed credit period = Average days late, and use a 365-day year when calculating the DSO. O a. 9.74 b. 8.37 Oc8.81 Od. 7.95 Oe. 9.27
- A supplier grants credit terms of 1/5, net 30. What is the effective annual rate of the discount on a purchase of $5,000?Credit terms of 4/30, net 90 days have been given to the Orchids Incorporated. What is the nominal annual percentate cost of the non-free trade credit if it pays within 120 days of purchase? (assume a calendar year of 365 days)Atlanta Cement, Inc. buys on terms of 2/15, net 30. It does not take discounts, and it typically pays 65 days after the invoice date. Net purchases amount to $720,000 per year. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? Please explain process and show calculations.
- A firm buys on terms of 2/10, net 30, but generally does not pay until 40 days after the invoice date. Its purchases totaled $1,095,000 per year. How much “non-free” trade credit does the firm use on average each year? What is the nominal cost of “non-free” trade credit? What is the effective cost rate of the costly credit?If a firm buys on terms of 3/15, net 45, but actually pays on the 20th day and still takes the discount, what is the nominal cost of its nonfree trade credit? Does it receive more or less credit than it would if it paid within 15 days?YVONE Trading requests credit terms from its trade supplier, Mestle Corporation. YVONE operates 360 days a year. The trade supplier offers two credit terms to YVONE as follows: Credit term number 1: 2/15, net 30 Credit term number 2: 1/10, net 90 Required: 1. Compute the nominal cost of forgoing the cash discount of the two credit terms. 2. Compute the effective cost of credit of the two terms. 3. If the prevailing bank interest rate is 15% of the nominal rate, which credit term should be bypassed to use the money as the source of financing? Discuss your answer briefly. (with solution)
