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.)
Q: What was the balance in the investment in Lennon co. Account found in the financial records of pacer…
A: Step 1: Introduction to the Common StockCommon stock represents the ownership of an investor in the…
Q: I want Correct Answer
A: Explanation of Income Statement: The Income Statement is a financial report that summarizes a…
Q: A company has current assets of $75,000 and current liabilities of $45,000. What is the current…
A: Explanation of Current Assets:Current assets are resources owned by a company that are expected to…
Q: can someone help me with this please?
A: Preparation of inventory report by using the FIFO method to compute the cost of ending inventory and…
Q: Need Correct Solution of this Question
A: Absorption costing is a method of accounting where all the costs of production are included in the…
Q: What is the stockholders' equity at the end of the year?
A: Step 1: Define Stockholders' EquityStockholders' equity represents a company's net worth. It can be…
Q: Which of the following is not a financial statement?
A: Explanation of Income Statement:The income statement is a financial statement that summarizes a…
Q: Give true answer for this accounting question
A: Explanation: The equivalent units are sum of complete units and incomplete units adjusted for their…
Q: Hello tutor solve this accounting issue
A: Step 1: Introduction to the Average Cost and the Variable CostThe average cost per unit of the total…
Q: The average number of radioactive particles passing through a counter during 1 millisecond in a lab…
A: To find the probability that more than 3 milliseconds pass between radioactive particles, we can use…
Q: Check my work Sunn Company manufactures a single product that sells for $240 per unit and whose…
A: (1) Contribution Margin Income Statement at the Break-Even PointWhat is the break-even point? The…
Q: General Accounting Expert answer
A: Here's an explanation of each option: A) To provide information for internal decision-making:This is…
Q: Answer in step by step with explanation. Don't use Ai and chatgpt.
A: Explanation: As per Statement of Retained Earnings:Ending balance of Retained earnings = Beginning…
Q: Give answer
A: Step 1: Prepaid insurance that should appear on the balance sheet on December 31 is equal to the…
Q: None
A: Step 1: Identify the necessary informationStep 2: Calculate the cost per unit under absorption…
Q: At the end of August, the first month of operations, the following selected data were taken from the…
A: Step 1: Unbilled Fees Earned at August 31: $31,900Reason for Adjustment: The business earned fees…
Q: What was ABC's inventory at the beginning of the year?
A: Step 1: Define InventoryInventory refers to the current assets of a business, which represent the…
Q: Help please
A: Above answer can be explained as under- Goods purchasedGoods purchasedCost of goods soldCost of…
Q: Financial accounting
A: Step 1: Define Down PaymentA down payment is money paid upfront by a buyer when they acquire an…
Q: Financial Accounting
A: Step 1: First, calculate the Current Assets and Quick Assets values in terms of liabilities then…
Q: ksk12
A: Prepare the partial balance (liability side) as of 31 December 2025 as follows:SWIFTY…
Q: The following data relate to the operations of Shilow Company, a wholesale distributor of consumer…
A:
Q: Provide answer this general accounting Question
A: Step 1: Define Accounting EquationThe accounting equation is a significant equation that shows all…
Q: Accounting
A: Step 1: Straight-Line Depreciation MethodStep 2: Units-of-Production Depreciation MethodStep 3:…
Q: Solve accounting question not use ai
A: Step 1: Definition of Contribution MarginThe contribution margin is a vital input under marginal…
Q: Need help with this accounting question
A: Present value of annual savings (inflows)$92,457.60*Less: Initial investment (outflow)(90,000)…
Q: Financial Accounting
A: Step 1: Define Fringe Benefit CostIt is the percentage of perquisites paid to the wages to an…
Q: Hu
A: Explanation of Preferred Stock:Preferred stock represents ownership in a company, but it comes with…
Q: None
A: Step 1: Given Value for Calculation Time = t = 3Future Value = fv = $400,000Interest Rate = r = 8%…
Q: Dart Inc. began operations on January 1, 2019. Dart sells a single product for $10 per unit. During…
A: In absorption costing, we classify costs into two main categories: product costs and period…
Q: Ch 04 Ex 4-11 i To Do Assign... Question 1 MyEagle H PeopleSoft s... Login - Edutu... Saved Help…
A: Required 1 Per Unit Direct Materials Direct LaborOverheadProduct Cost per UnitProduct…
Q: Don't use AI.
A: Just know that even without going through the explanation below, the answer is clearly zero. The…
Q: Exercise 3-18 (Algo) Weighted average: Production cost report LO P2 Elliott Company produces large…
A: If you have any clarifications (i.e., expand the explanation) or want different, expanded, or…
Q: Hello tutor provide solution
A: Step 1: Define Full CostingFull costing is also known as absorption costing which is a technique to…
Q: 1 GL0201 (Algo) - Based on Problem 2-2A LO P1, P2, P3, P4 Byrnes Company shows the following costs…
A: If you have any clarifications (i.e., expand the explanation) or want different, expanded, or…
Q: Stone Works is a paving stone installation business that operates from about April to October each…
A: 1. Record the revenues earned in 2024:The company completed work for which it had already received…
Q: None
A: Step 1: Track Purchases and Sales using LIFO Perpetual MethodJanuary 7: Purchase of 80…
Q: None
A: Step 1: Step 2: Step 3: Step 4:
Q: Builder Products, Incorporated, uses the weighted-average method of process costing. It manufactures…
A: The goal is to complete the equivalent units of production, cost per equivalent unit, cost of ending…
Q: Need help with this question
A: Step 1: Define Contribution MarginThe contribution margin is always calculated, considering fixed…
Q: Provide answer the question don't use ai
A: Step 1: Carrying Value Determination ComponentsCarrying value determination components can be…
Q: None
A: Explanation: Cost of inventory will be calculated by adding the amount of purchases net of discount,…
Q: During 20--, Rachael Lopez, president of Mathieson Company, was paid a semimonthly salary of $7,800.…
A: To calculate the amount of FICA taxes withheld from Rachael Lopez, we need to compute both the OASDI…
Q: Sahaj
A: 2019 XYZ Corporation Income StatementFor the…
Q: Provide correct answer for this accounting question
A: Step 1: Define Opening StockEvery accounting year, the company has some inventory left over from the…
Q: Business 123 Introduction to Investments May I please have the solution for the following exercise?…
A: To complete this exercise, you'll need to analyze at least two stocks from the list provided (Merck,…
Q: Solve this one Accounting Questions
A: The inventory turnover ratio is the financial ratio that is used to determine the times the…
Q: Hi expart Provide solution for this accounting question
A: Step 1: Stockholder's Equity can be calculated by subtracting the liabilities from the assets.…
Q: 20.
A: Step 1: Meaning of absorption costingIn absorption costing, we account for complete cost of a…
Q: None
A: Explanation of Equipment: Equipment represents a tangible asset used by a business in its operations…
General Accounting
Step by step
Solved in 2 steps
- 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.)Oli Construction 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.)P20,389P22,479P21,408P19,418P18,493Black 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.) * O P19,418 P20,389 P21,408 P22,479 P18,493
- If a firm buys under terms of 1/15, net 40, but actually pays on the 20th day and still takes the discount, what is the nominal cost of its nonfree trade credit? Assume a 365-day year. Do not round intermediate calculations. Round your 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.1. ABC Co has credit sales of $45 million per year and on average settles accounts with trade payables after 60 days. One of its suppliers has offered the company an early settlement discount of 0·5% for payment within 30 days. Administration costs will be increased by $500 per year if the early settlement discount is taken. ABC Co buys components worth $1·5 million per year from this supplier. From a different supplier, ABC Co purchases $2·4 million per year of Component L at a price of $5 per component. Consumption of Component L can be assumed to be at a constant rate throughout the year. The company orders components at the start of each month in order to meet demand and the cost of placing each order is $248·44. The holding cost for Component L is $1·06 per unit per year. The finance director of ABC Co is concerned that approximately 1% of credit sales turn into irrecoverable debts. In addition, she has been advised that customers of the company take an average of 65 days to…
- Your company has been offered credit terms on its purchases of 4/30, net 90days. What will be the nominal annual cost of trade credit if your companypays on the 35th day after receiving the invoice? (Assume a 365-day year.) Show your complete solution.a. Abc Investment Ltd., plans to borrow Ghc100,000 for a 90-day period from Lloyds Finance Company. Abc investment would repay the principal amount plus Ghc5,000 interest at maturity. Determine and calculate the Annual Percentage Rate of the credit to Abc Company Ltd. b. Belinda Limited has annual credit sales of Ghc5 million and cost of sales of GHC1.8 million. The company’s current assets consist of inventory and trade receivables. Current liabilities consist of accounts payables and an overdraft facility with an average interest rate of 10% per annum. The company gives 60 days credit to its customers and is allowed an average of 30 days credit by trade suppliers. The company has an operating cycle of 90 days. Other relevant information: Current ratio of Ait Ltd 1.5:1 Cost of long-term finance to Ait Ltd is 12% per annum Required: Calculate the, (i) Size of the overdraft of Ait Ltd (ii) Net working capital of the company (iii) Total cost of financing its current assets c.…NEKO Inc. is given terms of 2/10, net 45 by its suppliers. If NEKO Inc. forgoes the cash discount offered and pays the suppliers 5 days after the due date, what is the annual interest rate cost (Use 360-day year)?
- 6. GFB Co. buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 30 days after the invoice date. Net purchases amount to P730,000 per year. On average, how much "free" trade credit does GFB Co. receive during the year? (Assume a 365-day year.) А. Р30,000 C. P50,000 D. P60,000 E. P70,000 В. Р40,000The official terms of purchases of National Co. are 2/10, net 30 but generally the company does not pay until 40 days after the invoice date. Its purchases total P3,600,000 per year. Assuming 360 days a year, the approximate cost of the “non-free trade credit amounts to Answer format: 11.1%Company is contemplating factoring its accounts receivable. The factor will acquire P250,000 of the company’s accounts receivable every 2 months. An advance of 75 percent is given by the factor on receivables at an annual charge of 18 percent. There is a 2 percent factor fee associated with receivables purchased. What is the cost of the factoring arrangement? choose the letter of the correct answera. P30,000.00b. P33,750.00c. P63,750.00d. P103,000.00e. P125,000.00
