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.

User Account

All Pages