A company receives credit terms of 2/10 Net 30 from one of their suppliers. If the bill

Fantastic news! We've Found the answer you've been seeking!

Question:

A company receives credit terms of 2/10 Net 30 from one of their suppliers.

If the bill is $1000 and they pay on day 6 how much will they save?

Related Book For answer-question

Principles Of Managerial Finance

ISBN: 978-0136119463

13th Edition

Authors: Lawrence J. Gitman, Chad J. Zutter

See More Books

Posted Date: Apr 17, 2023 12:21 AM

See More Questions

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
We will be working with a company called Global Bike Inc., (GBI). Information regarding GBI follows. Company History Global Bike Inc. has a pragmatic design philosophy that comes from its deep roots...
What, if any, product or product line modifications will Outback have to make in the country you chose in order to be successful? Are any changes necessary in the design of the restaurants? Explain...
The president of a plastics company was quoted in a business journal as stating, We havent had a dollar of interest-paying debt in over 10 years. Not many companies can say that As a stockholder in...
Charles is a 60% partner in CD Partnership, a calendar year partnership. For 2023, Charles received a Schedule K-1 that reported his share of partnership items as follows: In addition, Charles and...
The breaking strength of hockey stick shafts made of two different graphite-kevlar composites yields the following results (in newtons). Can you conclude that the standard deviation of the breaking...
Carol Gorden was a good friend of yours in high school and is from your home town. While you chose to major in accounting when you both went away to college, she majored in marketing and management....
Given the historical cost of product Carla Vista is $13, the selling price of product Carla Vista is $15, costs to sell product Carla Vista are $3, the replacement cost for product Carla Vista is...
A furniture manufacturer produces two types of tables (country and contemporary) using three types of machines. The time required to produce the tables on each machine is given in the following...
Let f(x) = 2x-1 and g(x) = x^2-4. Enter each value. a. f(-5) = b. g(-3) = c. g(0) = Evaluate f at this value. The result is d. f(0) = Evaluate f at this value. The result is
What are the benefits of implementing Inclusive Education in all schools in the country to the Filipino Children?
Delph Company uses a job-order costing system and has two manufacturing departments-Molding and Fabrication. The company provided the following estimates at the beginning of the year: Machine-hours...
On January 2, Ramirez purchased equipment costing $23,500. The equipment has an estimated salvage value of $1,480 and an estimated useful life of years. Required: Compute the depreciation expense for...
Where would you use the "where would you use the "rate of progress" to estimate productivity? When working indoors. In geometric estimates. When the work is performed in a linear fashion, such as...
Briefly describe how to select the best bid when planning a sporting event in your current city. What strategies are involved in this process of event bidding? What is important to know about the...
It's April and business is growing. Since you started managing the dessert bar and coffee shop in Pinehaven Port, you've extended the weekend hours twice and several times had to ask your three...
Briefly discuss the implications of the financial statement presentation project for the reporting of stockholders equity.
Angina, Inc., has 5 million shares outstanding. The firm is considering issuing an additional 1 million shares. After selling these shares at their $20 per share offering price and netting 95% of the...
Commercial paper is usually sold at a discount. Fan Corporation has just sold an issue of 90-day commercial paper with a face value of $1 million. The firm has received initial proceeds of $978,000....
John Flemming has been shopping for a loan to finance the purchase of a used car. He has found three possibilities that seem attractive and wishes to select the one with the lowest interest rate. The...
Restore the file Boston Catering. Make the following adjustments and then print an income statement and balance sheet for the period 7/1/10 through 9/30/10 setting the columns to Month so that you...
Explain the journal entry method of recording end-of-period adjustments.
Give an example of an accrued expense other than the example given in this chapter. Explain how your example of accrued expense would be adjusted using journal entries.

A company receives credit terms of 2/10 Net 30 from one of their suppliers. If the bill

Question:

Expert Answer:

Answer i The credit terms of 210 net 30 means that the company can take a 2 discount on the to... View the full answer

Principles Of Managerial Finance

Students also viewed these finance questions