a. If a firm buys under terms of 3/15, net 45, but actually pays on the 20th
Question:
a. If a firm buys under terms of 3/15, net 45, but actually pays on the 20th day and still takes the discount, what is the nominal cost of its non-free trade credit?
b. Does it receive more or less credit than it would if it paid within 15 days?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 61% (13 reviews)
a Because the firm still takes the discount on Day 20 20 is ...View the full answer
Answered By
Deborah Joseph
My experience has a tutor has helped me with learning and relearning. You learn everyday actually and there are changes that are made to the curriculum every time so being a tutor has helped in keeping me updated about the present curriculum and all.
I have also been able to help over 100 students achieve better grades particularly in the categories of Math and Biology both in their internal examinations and external examinations.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Financial management theory and practice
ISBN: 978-0324422696
12th Edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt
Question Posted:
Students also viewed these Finance questions
-
Is replacement cost accounting more or less prudent than historical cost accounting?
-
Is buying an option more or less risky than buying the underlying stock?
-
1. Does Lowes hold more or less inventory than The Home Depot at the end of Fiscal 2016? 2. What method does Lowes use to determine the cost of the majority of its inventory? Comment on how this...
-
Communication: What are the characteristics of effective communication relevant to your team project submission? Relate to theory. Provide a minimum of 4. ( 8 ) Assess your communication...
-
In your opinion, what culture type is CEO Barra bringing to GM? Support your answer with evidence from the case.
-
Suppose | i > and | j > are eigenkets of some Hermitian operator A. Under what condition can we conclude that | i > + | j > is also an eigenket of A? Justify your answer.
-
Cash Management} Effective cash management is very important to the operating performance of a business. \section*{Required:} CONCEPTUAL CONNECTION Explain the principles of cash management. Why...
-
From the ledger balances given below, prepare a trial balance for the Cleland Company at June 30, 2010. List the accounts in the order shown on page 61 of the text. All account balances are normal....
-
Please assist me with these questions will leave good rating and review. Consider the parabola p(x) = -8.6x2 + 16.7x + 13.3. For which interval [A, B] is p(x)dx as large as possible? A note about the...
-
You are a financial analyst at a firm that has been returning cash to shareholders through stock repurchases. You want to determine how the level of repurchases will vary as a function of the sales...
-
Calculate the nominal annual cost of non-free trade credit under each of the following terms. Assume payment is made either on the due date or on the discount date. a. 1/15, net 20. b. 2/10, net 60....
-
Grunewald Industries sells on terms of 2/10, net 40. Gross sales last year were $4,562,500, and accounts receivable averaged $437,500. Half of Grunewalds customers paid on the 10th day and took...
-
On January 1, 2014, Gordon Co. enters into a contract to sell a customer a wiring base and shelving unit that sits on the base in exchange for $3,000. The contract requires delivery of the base first...
-
Before the global pandemic, warehouses performed mainly a role of protection i.e. protection from the weather and potential pilferage. Fast forward to current times i.e post global pandemic, the...
-
At the level of the renal glomerulus, cells envelop the glomerulus to prevent the passage of cells and proteins from being filtered. What are these cells called?
-
Use the following spot and forward bid-ask rates for the U.S. dollar/euro (USS/) exchange rate from December 10, 2010, to answer the following questions: US$/ US$/ Period spot Bid Rate Ask Rate...
-
Need your kind assistance to provide me with HTML, CSS, and JS code for the blog design below. I want the code to be similar to per design below. When the user hovers over the blog pic, there will be...
-
Store Revenues Costs 101 $4,100 $4,214 102 2227 2894 103 5,738 5,181 104 3982 3998 105 2,914 3,676 106 4,023 3,319 107 6,894 5,029 108 1,779 2,374 109 5,416 4,688 110 3,228 2,959 111 3,886 4,179 112...
-
Cross-Border Mergers and Acquisitions. Explain why cross-border mergers and acquisitions are difficult to implement.
-
What are the 5 Cs of marketing channel structure?
-
To resolve the controversy over insurance coverage of Superfund sites, it has been proposed that the insurance industry be taxed to create a fund out of which claims would be paid. What difference...
-
Under the fixed exchange rate system, what was the currency against which all other currency values were defined? Why?
-
If the Swiss franc depreciates against the U.S. dollars can a dollar buy more or fewer Swiss francs as a result?
-
What is a Eurodollar? It a French citizen deposits $10,000 in Chase Bank in New York, have Eurodollars been created? What if the deposit is made in Barclays Bank in London? Chases Paris branch? Does...
-
Standard Product Costs Deerfield Company manufactures product M in its factory. Production of M requires 2 pounds of material P , costing $ 1 6 per pound and 0 . 5 hour of direct labor costing, $ 2 2...
-
Bearings & Brakes Corporation ( B&B ) was incorporated as a private company. The company's accounts included the following at June 3 0 : During the month of July, the company had the following...
-
The cash account of Coronado Co . showed a ledger balance of $ 1 3 , 3 2 4 . 6 9 on June 3 0 , 2 0 2 5 . The bank statement as of that date showed a balance of $ 1 4 , 1 1 0 . Upon comparing the...
Study smarter with the SolutionInn App