What is Fairview clinic's costly trade credit? Fairview Clinic buys $600,000 in medical supplies each year(at gross prices) from its major supplier, ConsolidatedSupplies, which offers the clinic terms of 4/10, net 30. Whatis Fairview Clinics's costly trade credit?A. $32,000B. $48,000C. $40,000D. $25,000E. $27,000

Note:4/10 - means that a 4% discount is given if payment is made within 10 days.n/30 - means that…

Answered: Fairview Clinic buys $600,000 in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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What is Fairview clinic's costly trade credit?
Fairview Clinic buys $500,000 in medical supplies each year (at gross prices) from its major supplier, Consolidated Supplies, which offers the clinic terms of 5/10, net 30. What is Fairview Clinic's costly trade credit? A. $13,194 B. $39,583 C. $32,986 D. $26,389 E. $22,431
What is fairview clinics costly trade credit?
Fairview Clinic buys $620,000 in medical supplies each year (at gross prices) from its major supplier, Consolidated Supplies, which offers the clinic terms of 6/10, net 30. What is Fairview Clinic's costly trade credit? (365 days in a year) A. $13,194 B. $39,583 C. $32,986 D. $26,389 E. $22,431
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H4. Resolute Health buys $600,000 of a particular item (at gross prices) from its major supplier, Cardinal Health, which offers Resolute terms of 2/10, net 30. Currently, the hospital is paying the supplier the full amount due on Day 30, but it is considering taking the discount, paying on Day 10 and replacing the trade credit with a bank loan that has a 12 percent rate. Assume 360 days per year. What is the amount of free trade credit that the organization obtains from Cardinal Health? Format is $xx,xxx.xx What is the total amount of trade credit offered by Cardinal? Format is $xx,xxx.xx What is the approximate annual cost of the costly trade credit? Format is xx.xx% Should the organization replace a portion of the trade credit with the bank loan? Format is Yes or No If the bank loan is used, how much of the trade credit should be replaced? Format is $xx,xxx.xx
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Fairview Clinic buys $600,000 in medical supplies each year (at gross prices) from its major supplier, Consolidated Supplies, which offers the clinic terms of 4/10, net 30. What is Fairview Clinics's costly trade credit? A. $32,000 B. $48,000 C. $40,000 D. $25,000 E. $27,000