1. 2. 3. 4. 5. 6. 7. 8. Assuming CNE Inc. could receive 1/15, n/30 terms from its suppliers for its accounts payable (A/P), how much cash would CNE Inc. pay to its suppliers from January through April? Again, assuming 1/15, n/30 terms from its suppliers, and CNE Inc. adopting a policy of paying its suppliers early based on

Transcribed Image Text:

1. 2. 3. 4. 5. 6. 7. 8. Assuming CNE Inc. could receive 1/15, n/30 terms from its suppliers for its accounts payable (A/P), how much cash would CNE Inc. pay to its suppliers from January through April? Again, assuming 1/15, n/30 terms from its suppliers, and CNE Inc. adopting a policy of paying its suppliers early based on these terms, what would CNE Inc.'s accounts payable (A/P) ending balance be at the end of March if the beginning A/P balance was zero at the beginning of January? Based on the assumptions given in questions 1 and 2 regarding A/P terms and policies, what is the dollar amount adjustment (if none input 0), CNE Inc. needs to make to inventory in the month of April? In the month of April, what will be CNE Inc. interest payment on its $750,000 loan? In the month of April what will be the remaining balance on CNE Inc.'s loan? Given CNE Inc.'s stock and cash dividend declaration, what is the dollar amount impact to its balance sheet account "Cash Dividend Payable" (if none enter 0), in the month of March? Given CNE Inc.'s stock and cash dividend declaration, what is the dollar amount impact to its balance sheet account "Additions to Paid in Capital", (if none enter 0), in the month of March? Given CNE Inc.'s stock and cash dividend declaration, what is the dollar amount impact to CNE Inc.'s overall shareholder equity?

Expert Answer

1. CNE Inc. would pay a total of $1,250,000 to its suppliers from January through April. 2. CNE Inc.'s accounts payable (A/P) ending balance at the end of March would be zero if the beginning A/P bala View the full answer