A firm buys on terms of 2/8, net 45 days, it does not take discounts, and it actually pays after 63 days. What is the effective annual percentage cost of its non-free trade credit? (Use a 365-day year.)

Answers

Answer 1

The effective annual percentage cost of its non-free trade credit is 13.08%/

Here, we are to calculate the effective annual percentage cost.

Given Information

Discount % = 2%

Discount Days = 8

Net Days = 45

Actual days = 68

Nominal % cost = Disc. %/(100 – Disc. %) × (365/(Actual days – Disc. days)

Nominal % cost = 2 /(100 - 2) * 365/(68   -8)

Nominal % cost = 2 /98 * 365/60

Nominal % cost = 0.0204081 * 6.083333

Nominal % cost = 0.1241496

Nominal % cost = 12.41%

n = 365/(63 - 8) = 6.64

Effective annual rate = (1 + Nominal % rate/n)^ n – 1

Effective annual rate = (1 + 0.1241/6.64)^6.64 - 1

Effective annual rate = 1.13083302405 - 1

Effective annual rate = 0.13083302405

Effective annual rate = 13.08%

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Related Questions

Identify the supporting document:

A_ Sale of merchandise

B_Payment of rent

C_Buy a car

D_Current account deposit

E_Delivery of goods​

Answers

A_sale of merchandise


Karson is a manager in a bottle manufacturing company. He wants to check whether 100 bottles were produced and dispatched to the market. Which department should
he consult?

Answers

Answer:

Answer is Operations Department.

Explanation:

During 2021, Stork Associates paid $55,800 for a 20-seat skybox at Veterans Stadium for eight professional football games. Regular seats to these games range from $55 to $165 each. At one game, an employee of Stork entertained 18 clients. Stork furnished food and beverages for the event (provided by a local restaurant) at a cost of $3,400. The game was preceded by a bona fide business discussion, and all expenses are adequately substantiated. How much may Stork deduct for this event

Answers

Based on the information given if all the expenses are adequately substantiated. The amount that Stork can deduct for this event is $3,350.

Stock deduction

Costs of seats $3,300

($165x20)

Food and beverage $3,400

Total Entertainment expense $6,700

($3,300+$3,400)

Less 50% Limitation

Deduction $3,350

($6,700×.50)

Inconclusion the amount that Stork can deduct for this event is $3,350.

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An organization's mission differs from strategic planning in that strategic planning is the basic purpose of the organization
while the mission involves establishing the goals and objectites of the organization.
(A True
B) False

Answers

Answer : true



Explanation:

How do you redeem a winning ticket lottery?
A) scan on pos
B) validate on terminal
C) picklist on POS
D): redemption barcode entered in the pis if no touch screen

Answers

Answer:

4 Steps to Claim PCSO Lotto Prize

Go to the PCSO Main Office. Present two valid IDs (preferably signature-bearing government-issued IDs) and the winning ticket to the Prize Claim section of the Accounting and Budget Department. Fill out the required forms. Wait for the ticket to be validated.

Explanation:

No choices here

what are the conflict management styles and dispute resolution mechanism

Answers

Answer:

Five styles for conflict management, as identified by Thomas and Kilmann, are: competing, compromising, collaborating, avoiding, and accommodating. Businesses can benefit from appropriate types and levels of conflict. That is the aim of conflict management, and not the aim of conflict resolution

Grady, Inc. manufactures model airplane kits and projects production at 650, 500, 450, and 600 kits for the next four quarters. Direct materials are 4 ounces of plastic per kit and the plastic costs $1 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 850 ounces, and the company desires to end each quarter with 10% of the materials needed for the next quarter’s production. Grady desires a balance of 200 ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.10 hours of direct labor at an average cost of $10 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.20 per kit, and fixed overhead is $165 per quarter. Prepare Grady’s direct materials budget, direct labor budget, and manufacturing overhead budget for the year. Round the direct labor hours needed for production, budgeted overhead costs, and pre-determined overhead allocation rate to two decimal places.
Refer to the budgets prepared. Determine the cost per kit to manufacture the model airplane kits. Grady projects sales of 100, 150, 100, and 200 kits for the next four quarters. Prepare a cost of goods sold budget for the year. Grady has no kits in beginning inventory.

Answers

Grady, Inc.'s Direct Materials Budget, Direct Labor Budget, and Manufacturing Overhead Budget for the year are as follows:

Direct Materials Budget

                                            Quarter 1   Quarter 2  Quarter 3  Quarter 4   Total

Projected production                650          500            450          600      2,200

Ounces of plastic per kit              4               4                 4               4              4

Total materials required         2,600     2,000          1,800        2,400     8,800

Ending materials inventory        200         180             240           200

Raw materials available          2,800      2,180         2,040        2,600

Beginning materials inventory  850        200              180           240

Purchases of raw materials     1,950      1,980          1,860        2,360

Cost of materials purchased $1,950  $1,980     $1,860      $2,360  $8,150

Direct Labor Budget

                                            Quarter 1   Quarter 2  Quarter 3  Quarter 4   Total

Projected production                650          500            450          600      2,200

Hours per kit                              0.10          0.10            0.10          0.10         0.10

Total direct labor hours reqd.    65             50              45             60         220

Average cost per hour              $10            $10            $10            $10          $10

Total direct labor cost           $650         $500        $450        $600   $2,200

Manufacturing Overhead Budget:

Variable overhead                 $130         $100            $90         $120      $440

Fixed overhead                     $165         $165           $165         $165      $660

Total manufacturing o/h      $295        $265          $255        $285     $1,100

Manufacturing overhead/unit $0.45     $0.53       $0.57     $0.475     $0.50

Cost per Kit:

Direct materials cost per unit =  $4.00

Direct labor cost per unit            $1.00

Manufacturing overhead           $0.50

Cost per kit =                              $5.50

Cost of goods sold budget for the year:

                                 Quarter 1   Quarter 2  Quarter 3  Quarter 4   Total

Quarter Sales                100            150           100            200         550

Cost per unit             $5.50

Cost of goods sold   $550       $825         $550        $1,100       $3,025

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Ahoy do you need your rate of return to be greater than inflation

Answers

Why is it important for investments to provide a greater return than the rate of inflation?
When inflation levels are stable and moderate, investors have lower expectations of high
market returns. Conversely, expectations rise when inflation is high. When inflation rises,
DO PRICES IN THE ECONOMY, leading investors to require a higher rate of return to maintain
their purchasing power.

Along with a complete shut down or even jail time for its principals, what other possible result can occur if a business violates federal regulations?
A. The business may be fined for its infractions.
B. The business may be sanctioned and employees asked to resign.
C. The principal owners would be asked to leave the country

no links please​

Answers

Answer:

The answer is "yes".

By definition they regulate them, which means restraining some of the actions they might otherwise take that are perceived to harm others or have other greater negative impacts on society.

That being said, they also benefit them by generally fostering an environment of stability in the markets, which is the first thing that commerce needs in exploiting opportunities. When a business knows what to expect, it is able to develop effective strategies that optimize profits for the circumstances.

Explanation:

While some brokers still operate exclusively in person or online, the distinction between the three types has become increasingly

Answers

The practice of brokers transacting business online have been more increasing in recent time.

Brokers refers to individual or a firm acts as intermediaries between the buyer and seller for commission in return when executed.

Typically, the brokers provides various intermediary services in different field. For example, acting as intermediaries for investment, obtaining loan, purchasing real estate, purchasing insurance policy etc

While some brokers provides their services in contact with clients, some brokers provide their services online.

In conclusion, the practice of brokers transacting business online have been more increasing in recent time.

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which of the following sentence ls use active voice

Answers

Answer:

Where is the picture

Explanation:

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