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)
Q: Compute the labor efficiency variance of this general accounting question
A: Step 1: Define Labor Efficiency VarianceThe Labor Efficiency Variance (LEV) measures the efficiency…
Q: ABC is an all-equity firm that has 44,200 shares of stock outstanding at a market price of $14.70…
A: ABC, an all-equity firm, currently has 44,200 shares outstanding, each priced at $14.70, resulting…
Q: A fixed asset with a cost of dollar 42,200 and accumulated depreciation of dollar 36,500 is sold for…
A: Concept of Book ValueThe book value of an asset represents its net worth after accounting for…
Q: Solve this MCQ
A: Explanation of Net Income:Net income is the total profit a company earns after subtracting all…
Q: Pinakin Inc. has sales of $680,000 and costs of $305,000. Interest expense is $25,000 and…
A: Step 1: Calculation of Earnings before taxEarnings before tax = Sales - Costs - Interest expense -…
Q: ????
A: Calculate Earnings Per Share (EPS):EPS = Net Income / Shares OutstandingEPS = $38,000 / 60,000…
Q: How much was Dev's net income?
A: Step 1: Introduction to income statementIncome statement is referred to as the financial statement…
Q: What is the actual return on pension assets of this financial accounting question?
A: Step 1: Define Actual Return on Pension AssetsThe actual return on pension assets represents the…
Q: Don't use ai given answer accounting questions
A: Step 1: Definition of Journal EntryA journal entry is a formal record of a financial transaction in…
Q: Do fast answer of this accounting questions
A: Step 1: Definition of Variable Overhead Spending VarianceThe Variable Overhead Spending Variance is…
Q: A company sells inventory costing $17,000 to a customer for $25,000. Because of significant…
A: Concept of Installment Sales MethodThe Installment Sales Method is an accounting approach used when…
Q: Please given answer general accounting
A: Step 1: Definition of Gross MarginGross margin represents the difference between net sales and the…
Q: Interest earned ratio for the year?
A: Earning Before Interest and Tax(EBIT) = Net Income + Interest + TaxEarning Before Interest and…
Q: What is the predetermined overhead rate of this financial accounting question?
A: Step 1: Definition of Predetermined Overhead RateThe Predetermined Overhead Rate (POHR) is an…
Q: Express the answer with 3 decimal places
A: Step 1 The coefficient of variation (CV) is calculated using the formula: CV=μσ ←(1) where:σ is…
Q: Subject: financial accounting
A: Explanation of Operating Profit Margin: Operating profit margin is a financial metric that measures…
Q: Need help with this financial accounting question
A: Step 1:Annual Depreciation using the straight-line method can be calculated by dividing the…
Q: Manufacturing overhead is ???
A: Step 1: Definition of Manufacturing OverheadManufacturing overhead includes all indirect costs…
Q: Wnat to this question answer general Accounting
A: Step 1: Define DividendA dividend is an easy way to earn money without actively participating but by…
Q: Waiting for your solution general Accounting
A: Step 1: Define Operating Cycle and Cash CycleOperating Cycle is the total time taken by a company to…
Q: I Want Answer
A: Coefficient of variation formulaCoefficient of variation = s/x̄wheres = standard deviation x̄ = mean…
Q: Hamilton Consulting Services, a consulting firm, had accounts receivable of $15,000 on March 31.…
A: Explanation of Accounts Receivable: Accounts receivable represents the money owed to a business by…
Q: Financial Accounting MCQ
A: Concept of Opportunity CostOpportunity cost refers to the value of the next best alternative that is…
Q: Please given answer
A: Step 1: Definition of Capital GainCapital gains refer to the profit made from selling an asset at a…
Q: Kindly help me with accounting questions
A: Step 1:Premium or discount can be calculated by subtracting the face value of the bond from the…
Q: financial accounting an
A: Step 1: Definition of EquityEquity equals the contributed capital plus retained earnings. However,…
Q: expert of general accounting
A: Step 1: Definition of Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) represents the direct costs…
Q: Amount of collection from customer?
A: Explanation of Cash Collections from Customers:Cash collections from customers refer to the total…
Q: Accounting
A: Concept of Return on Equity (ROE)Return on Equity (ROE) is a financial metric that measures a…
Q: Given answer general Accounting
A: Step 1: Calculation of total estimated variable manufacturing overheadsTotal estimated variable…
Q: Aa
A: Step 1: Definition of Work-In-Process InventoryWork-in-process inventory refers to partially…
Q: What is the recognized gain?
A: Explanation of Cost Basis: Cost basis represents the original purchase price of an investment plus…
Q: Kindly help me with accounting questions
A: Step 1: Definition of Accrued ExpensesAccrued expenses are expenses that have been incurred but not…
Q: What is the total manufacturing overhead cost for this general accounting question?
A: Step 1: Define Total Manufacturing Overhead CostManufacturing Overhead Costs include all indirect…
Q: The total cost to be accounted for would be?
A: Explanation of Work in Process Inventory: Work in Process (WIP) inventory represents the partially…
Q: The Pilot Corporation had 17,000 shares of common stock outstanding on January 1 and issued an…
A: Concept of Common Shares OutstandingCommon Shares Outstanding refers to the total number of shares…
Q: Provide answer general accounting
A: Step 1: Define Underfunded Pension ObligationThe underfunded pension obligation occurs when the…
Q: Can you please give me correct answer this financial accounting question?
A: Profit Margin= (Income from Operations / Sales) * 100After plugging in the given values we get=…
Q: hi expert please solve questions
A: Step 1:Step 2: Step 3: Step 4:
Q: Strait Company manufactures office furniture. During the most productive month of the year, 4,400…
A: Concept of High-Low MethodThe High-Low Method is a cost estimation technique used to separate fixed…
Q: 4 POINTS
A: Explanation of Revenue on Account: This refers to income earned by providing goods or services to…
Q: Morse Company reports a total contribution margin of $112,000 and pretax net income of $16,000 for…
A: The Degree of Operating Leverage (DOL) is a measure of how sensitive a company's operating income…
Q: At an output level of 19,500 units, you have calculated that the degree of operating leverage is…
A: The question requires the determination of the fixed cost in relation to the degree of operating…
Q: What are the total assets of the company on these financial accounting question?
A: Step 1: Definition of Total AssetsTotal Assets represent all the economic resources owned by a…
Q: Answer this MCQ
A: To calculate the Manufacturing Cycle Efficiency (MCE), we need to use the following formula:MCE =…
Q: Financial Accounting Question please answer
A: Step 1: Define Return on Equity (ROE)Return on Equity (ROE) is a financial ratio that measures a…
Q: What is the machine's book value at the end of 2024 on this financial accounting question?
A: Step 1: Definition of Straight-Line DepreciationStraight-Line Depreciation is a method of allocating…
Q: Calculate pankaj's net income for the year
A: Explanation of Sole Proprietorship: This is a business structure where one individual owns and…
Q: The amount of the ending inventory?
A: Explanation of Beginning Inventory:Beginning inventory refers to the value of goods a company has in…
Q: For the year
A: Step 1: Predetermined overhead rate Predetermined overhead rate = Estimated manufacturing…
Which offers the cline terms of
Step by step
Solved in 2 steps
- Home Infusion provides an average of 14 home health visits a day at an average net charge of $94 per visit. They provide services approximately 250 days per year. All services are paid by two third-party payers: One pays for 29 percent of the billing 19 days after the service is provided and the second pays for the remaining billings in 29 days. Average cost of debt (i.e. the interest rate on bank loans) is 3%. What is the average accounts receivable balance? (Round your final answer to 2 decimal places. Omit the "$" sign and commas in your response. For example, $123,456.789 should be entered as 123456.79.) Give typing answer with explanation and conclusionWhat is the effective annual percentage cost of its non-free trade credit?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.
- Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 5/10, net 105. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its non-free trade credit? (Assume a 365-day year.) a. 21.35% b. 21.78% c. 17.68% d. 20.22% e. 19.57%Black Panther Inc. buys on terms of 2/15, net 60 days. It does not take discounts, and it typically pays on time, 60 days after the invoice date. Net purchases amount to P450,000 per year. On average, how much “free” trade credit does the firm receive during the year? (Assume a 365-day year, and note that purchases are net of discounts.)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)
- Howes Inc. buys on terms of 2/15, net 50 days. It does not take discounts, and it typically pays on time, 50 days after the invoice date. Net purchases amount to $450,000 per year. On average, what is the dollar amount of costly trade credit (total credit − free credit) the firm receives during the year? (Assume a 365-day year, and note that purchases are net of discounts.)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)Kumi Ltd permits its customers to pay with a credit card or to receive a percentage discount x for paying cash. For credit card purchases, the companyreceives 97% of the purchase price one-half month later. Determine the value of x that would make the two payment methods equivalentif the company’s annual rate of return is 14%.
- 7. Howes Inc. purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 50. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its non-free trade credit? (Assume a 365-day year.)Pets Store Inc. sells on terms of 3/20, net 35. What is the effective annual cost of trade credit under these terms? Use a 365-day year. Round answer to two decimal places.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.