Determine what the retailer effective cost of trade credit

Assignment Help Financial Accounting
Reference no: EM132505343

Cost of Trade Credit

Question 1: A large retailer obtains merchandise under the credit terms of 1/20, net 35, but routinely takes 55 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's effective cost of trade credit? Assume a 365-day year. Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM132505343

Questions Cloud

Record the auto insurance expense only for the month of may : Record the auto insurance expense only for the month of May. In January, Sunny Shine prepaid six (6) months of automobile insurance for the delivery truck
Record the baking supplies that were used in may : $2,450 were purchased on May 21st. By May 31st, a count showed only $350 in inventory. Record the baking supplies that were used in May.
Compute the free-cash-flows on the investment : Compute the Free-Cash-Flows on this investment (F CF = EBIT × (1 - t) + D&A - CAP EX - ?NOW C). Compute the NPV given a WACC of 10%.
Review the historical and contemporary growth of tourism : Title - Tourism and Sustainable Development. Briefly review the historical and contemporary growth of tourism in the country
Determine what the retailer effective cost of trade credit : Determine What is the retailer's effective cost of trade credit? Assume a 365-day year. Do not round intermediate calculations.
Prepare the journal entries for crane company transaction : Prepare the journal entries for the crane company transactions. Crane company had these transactions during the current period
Discuss carla vista is considering the two courses action : Carla Vista Co balance sheet consists of common STOCK $396,000 and retained earnings $409,000. Carla Vista is considering the two courses action
Make a profit in the short-run and long-run : If there is no general theory of Oligopoly how do we explain the behavior of firms in this market?
Discuss the current account and its components : Discuss the current account and its components. The capital account and financial account and their components.

Reviews

Write a Review

Financial Accounting Questions & Answers

  The question is about standard cost involves calculation of

the question is about standard cost involves calculation of different variances.marrick company makes one product for

  What are the firms accounts receivables turnover

Blue Air Inc., has net sales of $767,000 and accounts receivables of $162,000. What are the firm's accounts receivables turnover?

  Log transformation when points do not seem to follow a

log transformation when points do not seem to follow a straight line.speculate what you think we might have to do for

  What the financial statement disclosed about the inventory

With this information, I turned back to my Module 3 financial statement from CVS Health to see what the financial statement disclosed about their inventory methods

  Question 1robertson inc prepares its financial statements

question 1.robertson inc. prepares its financial statements according to international financial reporting standards.

  What are tax consequences to sheldon and hawk corporation

Hawk Corporation redeems 75 shares of Sheldon’s stock for $75,000. Sheldon had acquired all of his shares 10 years ago at a cost of $100 per share. What are the tax consequences to Sheldon and Hawk Corporation as a result of the stock redemption?

  Prepare a multiple-step income statement for music warehouse

Prepare a multiple-step income statement for Music Warehouse. Prepare a statement of changes in stockholder's equity for Music Warehouse.

  Would you recommend the increased advertising

Prepare a contribution format income statement segmented by divisions, as desired by the president.

  Who relies on the financial statements

a) Who relies on the financial statements (external users) and why, what are they using the statements for?

  What adjusting entry should race car company make on dec

What adjusting entry should Race Car Company make on December 31, the end of the accounting period (no previous adjustment has been made)?

  What is the expected return on the market

The stock of Big Joe's has a beta of 1.38 and an expected return of 16.26 percent. The risk-free rate of return is 3.42 percent. What is the expected return on

  Create both a common size and a regular balance sheet

Why you need to spend the time and money to have your analyst create both a common size and a regular balance sheet and income statement

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