Your firm has an average collection period of 27 days. The current practice is to factor all receivables immediately at a discount of 2.2 percent. Assume that default is extremely unlikely. What is the effective cost of borrowing? (365 in year)
Q: The Marshall Company has a joint production process that produces two joint products and a…
A: Here's a step-by-step breakdown with detailed workings for each question:
Q: Don't use ai given answer accounting questions
A: Step 1: Definition of Units CompletedThe number of units completed during a period includes both the…
Q: MCQ
A: Explanation of Sales: Sales represents the total revenue ($15,000) that Samson Corp generated from…
Q: Need correct answer general Accounting question
A: Step 1: Determine the sales discount Fashion Plus gives the customer.= selling price x rate if the…
Q: Find the break even point if the selling price
A: Step 1: Definition of Break-Even PointThe break-even point is the level of sales at which total…
Q: Hello tutor please solve this question
A: To determine the total fixed costs using the high-low method, follow these steps: Step 1: Identify…
Q: General accounting
A: Step 1: Definition of Cost of Goods Manufactured (COGM)The cost of goods manufactured (COGM) is the…
Q: Correct answer
A: Explanation of Activity Cost Pool:An activity cost pool is a grouping of all costs associated with a…
Q: tre 3 3.14134,54
A: 34.54 ÷ 3.14 Step 1: First, eliminate any decimals in the divisor. We do this by moving the decimal…
Q: Subject : Financial Accounting
A: Explanation of Capital Gain:Capital gain refers to the profit earned from selling an asset, such as…
Q: Accurate Answer
A: Explanation of Predetermined Overhead Rate (POHR):The predetermined overhead rate (POHR) is the rate…
Q: 5 PTS
A: Explanation of Assets Assets are the resources owned by a company that have monetary value. They can…
Q: During the year, Kiner Company made an entry to write off a $9,000 uncollectible account. Before…
A: Concept of Accounts ReceivableAccounts receivable represents the money owed to a company by its…
Q: Calculate the closing petty cash balance?
A: Explanation of Petty Cash: Petty cash is a small amount of money kept on hand by a business for…
Q: ?!
A: Step 1: Calculation of total overhead costTotal Estimated Overhead Costs = Indirect Labor + Factory…
Q: Ans
A: Concept of Average Collection Period: The average collection period refers to the time it takes for…
Q: None
A: The question requires the determination of the Optimal Order Quantity. The optimal order quantity…
Q: Need correct answer. general accounting
A: Correct Answer:a. revenues. Explanation:Owner's Equity represents the owner's claims on the business…
Q: Financial Accounting
A: Step 1: Define Basic Earnings per ShareA company's basic earnings per share is the net income…
Q: What is the company's plantwide overhead rate
A: Concept of Overhead Costs: Overhead costs refer to the indirect expenses incurred during the…
Q: None
A: Step 1: Definition of Operating LeverageOperating leverage measures the sensitivity of a company's…
Q: Solve this question general Accounting
A: Step 1: Define Gross ProfitGross profit is the difference between a company's sales revenue and its…
Q: Calculate the current ratio for the business of this financial accounting question
A: Step 1: Define Current RatioThe current ratio is a financial ratio that shows the relationship…
Q: None
A: Concept of Activity-Based Costing (ABC): Activity-based costing is a costing method that assigns…
Q: Financial accounting question
A: To allocate the partnership's net income of $240,000 between Green and White based on their…
Q: Provide answer
A: The Capital Asset Pricing Model (CAPM) is primarily used to c) Calculate the required rate of return…
Q: Hi teacher please help me this question solution
A: Dollar Markup: This is the difference between what Buzz was charged for the rebuilt motor and what…
Q: NO WRONG ANSWER
A: Explanation: In the given case, we are required to calculate the amount of contribution margin from…
Q: Need help with this accounting questions
A: Step 1: Definition of Operating Cash Flow (OCF)Operating Cash Flow (OCF) is the amount of cash…
Q: Financial accounting question
A: Step 1: Define Loan Repayment with InterestLoan repayment with interest involves calculating the…
Q: General accounting
A: Step 1: Definition of Asset Turnover and Equity MultiplierAsset Turnover: Asset turnover measures…
Q: Need help with this financial accounting question not use ai
A: Step 1: Define Joint Cost AllocationJoint cost allocation assigns costs incurred during joint…
Q: 128361 MENTS was extracted by as at 30 June 2018. als to agree. 30 June 2018 Dr with each other.…
A: Step 1:Trial Balance is the statement prepared at the end of year to check the arithmetical accuracy…
Q: MCQ
A: To calculate the book value per share, use the formula: Book value per share = Total equity /…
Q: What is the unit product cost for the month under variable costing?
A: Step 1: Definition of Variable CostingVariable costing is a method used to calculate the…
Q: Calculate gross profit
A: Step 1: Definition of Gross ProfitGross profit is the difference between net sales and cost of goods…
Q: Cross Collectibles currently fills mail orders from all over the U.S. and receipts come in to…
A: To calculate the net annual savings from implementing the lockbox system, follow these steps:Step 1:…
Q: During the year
A: Final Answer:The correct choice is D. $288,000.
Q: Financial accounting problem
A: To calculate the earnings per share (EPS), divide the net income by the number of outstanding…
Q: Given true answer general Accounting question
A: Step 1: Define Degree of Operating Leverage (DOL)The Degree of Operating Leverage (DOL) measures the…
Q: Calculate the amount of cash Trump general accounting
A: Step 1: Definition of Cash Collected from CustomersCash collected from customers represents the…
Q: Tutor Need Your Help
A: The correct answer is: a) It measures profit, people, and planet impacts simultaneously.Explanation:…
Q: Need help
A: The contribution margin is calculated as:Contribution Margin=Revenue per unit−Variable cost per…
Q: A company currently has $54 million in sales, $23 million in current assets, $43 million in fixed…
A: Sales Growth Rate= (Projected Sales−Current Sales)/Current Sales= (85−54)/54=0.5741 or 57.41%…
Q: MCQ
A: Permanent accounts (also known as real accounts) are accounts that are not closed at the end of an…
Q: What is the earnings per shere
A: The question requires the determination of the EPS. Earnings per share (EPS) is a widely used metric…
Q: What is the correct option? ? General Accounting question
A: Step 1: Calculation of contribution margin ratioVariable costs are 75% of sales.We know that sales…
Q: Accurate Answer
A: Explanation of Predetermined Overhead Rate: The predetermined overhead rate is a calculated cost…
Q: Provide Answer this Accounting Problem .
A: The operating margin is calculated using the formula: Operating Margin = (Operating Income ÷ Sales…
Q: Provide help
A: To calculate the percentage capital gain, we need to understand the change in the price of the stock…
Accounting
Step by step
Solved in 2 steps
- Your firm has an average collection period of 27 days. The current practice is to factor all receivables immediately at a discount of 2.2 percent. Assume that default is extremely unlikely. What is the effective cost of borrowing? (365 in year)What is the effective cost of borrowing?You've borrowed $6,903.71 and agreed to pay back the loan with monthly payments of $270. Assume the interest rate is 15% stated as an APR. a. How long will it take you to pay back the loan? Note: Do not round intermediate calculations. Round your answer to the nearest whole number. Number of months b. What is the effective annual rate on the loan? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Effective annual rate %
- In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $42,000 and the interest rate is 8.50%, the borrower “pays” 0.0850 × $42,000 = $3,570 immediately, thereby receiving net funds of $38,430 and repaying $42,000 in a year. a. What is the effective interest rate on this loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What is the effective annual rate on a 1-year loan with an interest rate quoted on a discount basis of 18.50%? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)Need help= Consider two loans with one-year maturities and identical face values: a(n) 8.4% loan with a 1.03% loan origination fee and a(n) 8.4% loan with a 4.5% (no-interest) compensating balance requirement. Which loan would have the higher effective annual rate? Why? The EAR in the first case is%. (Round to one decimal place.) er cl
- HelpSuppose your Visa credit card charges an APR of 13.5%, compounded monthly and your current statement shows a balance of $758.50.a) If you make no payments and no additional purchases for one year, what will bethe amount owed at the end of that year?b) How much total interest will be paid?c) What is the nominal rate?d) What is the effective annual rate (EAR)?e) Suppose this credit card company requires a minimum monthly payment of $25.Assuming that no additional purchases are made and also assuming that this minimum amount is paid every month, prepare an amortization schedule for the first three months of payments.Many lending agencies compound interest more often than yearly, and as we noted in Example P.2, they are required to report the annual percentage rate, or APR, in a prominent place on the loan agreement. Furthermore, they are required to calculate the APR in a specific way. If r is the monthly interest rate, then the APR is calculated using APR = 12 ✕ r. (a) Suppose a credit card company charges a monthly interest rate of 1.8%. What APR must the company report? (Round your answer to the nearest tenth of a percent.) %(b) The phrase annual percentage rate leads some to believe that if you borrow $5000 from a credit card company which quotes an APR of 21.6%, and if no payments are made, then at the end of 1 year interest would be calculated at 21.6% simple interest on $5000. How much would you owe at the end of a year if interest is calculated in this way? (Round your answer to the nearest cent.)$ (c) If interest is compounded monthly (which is common), then the actual amount you would…
- Consider a $150,000 loan with an annual interest rate of 6.5 percent and a 30-year term. Discount points are equal to 2 percent. All other up-front financing costs to be paid by the borrower total $3,000. Compute the monthly payment and the loan balance at the end of months 1–6. What is the effective borrowing cost (EBC), assuming that the loan remains outstanding to maturity?Data Back-Up Systems has obtained a $29,000, 90-day bank loan at an annual interest rate of 15%, payable at maturity. (Note: Assume a 365-day year.) a. How much interest (in dollars) will the firm pay on the 90-day loan? b. Find the 90-day rate on the loan. c. Annualize your result in part b to find the effective annual rate for this loan, assuming that it is rolled over every 90 days throughout the year under the same terms and circumstances. Answers a. The amount of interest on the loan is $___. (Round to the nearest cent.) b. The effective 90-day rate is___%. (Round to two decimal places.) c. The effective annual rate is___%. (Round to two decimal places.)A bank pays a simple interest rate of 4.1% on 30 to 179-day GICs of at least $100,000. What is the effective annualized rate of return:a) On a 40-day GIC?b) On a 160-day GIC?