P16–2 COST OF GIVING UP THE EARLY PAYMENT DISCOUNTS Determine the cost of giving up the early payment discount under each of the following terms of sale. (Note: Assume a 365-day year.) 2/10 net 30. 1/10 net 30. 1/10 net 45. 3/10 net 90. 1/10 net 60. 3/10 net 30. 4/10 net 180.
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P16–2 COST OF GIVING UP THE EARLY PAYMENT DISCOUNTS Determine the cost of giving up the early payment discount under each of the following terms of sale. (Note: Assume a 365-day year.)
2/10 net 30.
1/10 net 30.
1/10 net 45.
3/10 net 90.
1/10 net 60.
3/10 net 30.
4/10 net 180.
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- P16–2 Cost of giving up early payment discounts Determine the cost of giving up the dis-count under each of the following terms of sale. (Note: Assume a 365-day year.) 4/10 net 180?Cost of giving up early payment discounts Determine the cost of giving up the dis-count under each of the following terms of sale. (Note: Assume a 365-day year.) b. 1/10 net 30.2. A credit sale of P750 is made on June 13, term 2/10, net/30. A return of P50 is granted on June 16. The amount received as payment in full on June 23 is: a. P700 b. P650 c. P686 d. P685
- Which of the 3-5 year notes might be considered cheap? Group of answer choices O. HON 3.25 12/01/23 O. ITW 3 1/2 03/01/24 O. HON 2.3 08/15/24 O. HON 1.35 06/01/25What amount will reduce the amount due on an invoice of $2555 73 by $1106 05 if the terms of the invoice are 1/10, n/60 and the payment was made during the discount period? The payment amount is s (Round to the nearest cent as needed)# 17 If credit terms of "2/10, net 40" are offered, the approximate cost of not taking the discount and paying at the end of the credit period would be (Assume a 365-day year) Answer O 20.8 percent O 22.8 percent O 24.8 percent O 23.8 percent
- Calculate the VAT amount of an item if the VAT inclusive amount is R250. A) R32.61 B) R30.62 C) R30.70 D) R30.75Cost of giving up cash discounts Determine the cost of giving up the cash discount under each of the following terms of sale. (Note: Assume a 365-day year.) 3/10 net 90 1/10 net 60 3/10 net 30 4/10 net 180Question 3 (at home, to practice) The following banks all offer 20-year Certificates of Deposits* (CDs), but at the following, different, conditions: Bank A: Bank B: Bank C: Bank D: Bank E: 10 percent per year compounded annually 9.8 percent per year compounded semiannually 9.6 percent per year compounded quarterly 9.5 percent per year compounded monthly 9.4 percent per year compounded daily Francesca has inherited £150,000. She decides to invest the money in the 20-year Certificate of Deposit offered by Bank E. If, instead, Francesca had invested her money in the bank with the CD offering the best rate, how much more money would she have had after 20 years? First write down the formulae you need to use to do the calculations. Then, solve numerically using a calculator or Excel.
- H1. Account 8% rate of return with annual rental payment of 8141920. The list price of an air conditioner is OMR 250. If manufacturer sells this product to a retailer for list price less 15% discount, what will be the amount of account receivable to be recorded by the manufacturer? a. OMR 250 b. OMR 212.50 c. OMR 37.50 d. OMR 287.50P15–6 Early payment discount decisions Prairie Manufacturing has four possible suppliers, all of which offer different credit terms. Except for the differences in credit terms, their products and services are virtually identical. The credit terms offered by these suppliers are shown in the following table. (Note: Assume a 365-day year.) Supplier Credit terms J 1/5 net 30 EOM K 2/20 net 80 EOM L 1/15 net 60 EOM M 3/10 net 90 EOM Calculate the approximate cost of giving up the early payment discount from each supplier. If the firm needs short-term funds, which are currently available from its commercial bank at 9%, and if each of the suppliers is viewed separately, which, if any, of the suppliers’ early payment discounts should the firm give up? Explain why. Now assume that the firm could stretch by 30 days its accounts payable (net period only) from supplier M. What impact, if any, would that have on your answer in part brelative to this supplier?