Amount of the discounts that rainbow customers normally

Assignment Help Financial Management
Reference no: EM132050669

Rainbow Inc.'s sales equal $200,000 each month. Rainbow generally permits credit purchases with terms of 3/10 net 30. Ten (10) percent of total sales are for cash, and the remaining 90 percent pay on credit. Of the credit sales, 20 percent are paid on Day 10 of the billing cycle, and the rest pay on Day 30 (in the following month). What is the amount of the discounts that Rainbow's customers normally take ?

Reference no: EM132050669

Questions Cloud

Effect of the credit policy change on the firm value : Sunshine Inc. recently tightened its credit policy. What was the effect of the credit policy change on the firm's value?
Describe a time that you employed the platinum rule : Discuss one theoretical ethical approach that you plan to include in your final paper such as universalism, utilitarianism, Divine command,or ethical relativism
Lawsuit against bob and charlie for breach of contract : Sammy Supplies brings a lawsuit against Bob and Charlie for breach of contract. Who is liable here? Explain.
Describe theories relevant to human services practice : Analyze the foundation of two of the counseling and theoretical orientations discussed in this unit based on their view of human behavior.
Amount of the discounts that rainbow customers normally : What is the amount of the discounts that Rainbow's customers normally take ?
Develop and deliver human resources programs : How can tying human resources development programs to an organization's strategic plan make it easier to justify requests for resources
Assuming aberwald always orders the eoq amount : Assuming Aberwald always orders the EOQ amount, what will be its total ordering cost this year?
Asking for financial help to send milo : To obtain the funds to pay the debt, she sends e-mails to people that she does not personally know asking for financial help to send Milo
How will you go about developing a research plan : The following questions should be addressed in this section of the paper: what is your plan to support and frame your case study within the context.

Reviews

Write a Review

Financial Management Questions & Answers

  The project will produce the same after-tax cash inflows

The project will produce the same after-tax cash inflows of 533,700 per year at the end of the year.

  What is projects NPV

A project has an initial cost of $71,600, expected net cash inflows of $12,000 per year for 12 years, and a cost of capital of 11%. What is the project's NPV?

  Currently working on financial planning for the company.

Edward, an employee of Akron Steels, Inc., is currently working on financial planning for the company.

  What is the pretax cost of debt-after-tax cost of debt

What is the company's pretax cost of debt? Pretax cost of debt % If the tax rate is 35 percent, what is the after-tax cost of debt?

  Market price of the bond if yields to maturity for risk

What will be the market price of the bond if yields to maturity for this risk class fall to 6.5 per cent?

  Statements best describes the revenue cycle

Which of the following statements best describes the revenue cycle?

  Net annual savings be if service were adopted

Your firm has an average receipt size of $130. A bank has approached you concerning a lockbox service that will decrease your total collection time by two days. You typically receive 7,200 checks per day. The daily interest rate is .018 percent. The ..

  Estimate the current market value of debt and equity

Hugo Boss AG is a German luxury fashion and style house that is examining its financing policy for possible changes. The firm has 8-year coupon bonds outstanding with a face value of $ 400 million and interest expenses of $18.0 million a year. Estima..

  Whats the value of building the plant

Acme Industries is considering building a plant that will have a value after two years. The cash flows from the plant will be $200 million following two good years, $150 million following one good and one bad year, and $100 million following two bad ..

  The most independent government organizations

The federal reserve is currently one of the most independent government organizations in the United States.

  Leave an endowment for your heirs

You wish to leave an endowment for your heirs that goes into effect 50 years from today. You don’t want to be forgotten after you pass so you wish to leave an endowment that will pay for a grand soirée yearly and forever. What amount would you like s..

  The maximum amount you would pay for this investment

If you require a 14 percent rate of return on an investment of this sort, what is the maximum amount you would pay for this investment?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd