Chapter 19, Problem 19.1DA

Pacific Retail Store purchased merchandise inventory worth $8,500 on February 15, with payment terms of 2/10, n/30 (meaning a 2% discount if paid within 10 days, otherwise the full amount is due within 30 days). If Pacific pays the invoice on February 22, how much will they pay?

I am looking for help with this accounting question using proper accounting standards.

You are a financial analyst at Beta Ltd., a company that is considering acquiring Alpha Ltd. You have been tasked to perform a discounted cash flow (DCF) valuation analysis in Excel to determine the value of the target company and advise on whether the acquisition would be financially beneficial.   The following information is provided:                             1.  Alpha Ltd. revenues were Sh.12.5 million. This revenue is expected to grow at a constant annual growth rate of 7.5% over the next 5 years.   2.  Alpha’s Ltd. gross profit margin is 75%.           3.  The target company currently has Sh.8 million in debt and Sh. 3 million in equity.    4. Selling general, administration and other expenses is expected to be 45% of sales.   5. Depreciation is expected to be 2.5% of sales.   6.  Net capital expenditures are expected to be 2.5% of net revenue annually.     7. Changes in net working capital are expected to amount to Sh.500,000, Sh.600,000, Sh.700,000,…