Effective annual rate of stretching accounts payable

Reference no: EM1361274

C++ Notes is booming, and it needs to raise more capital. The company purchases supplies from a single supplier on terms of 1/10, net 20 days, and it currently takes the discount. One way of getting the needed funds would be to forgo the discount, and C++'s owner believes she could delay payment to 40 days without adverse effects. What is the effective annual rate of stretching the accounts payable?

Reference no: EM1361274

Questions Cloud

Write sql statements to calculate average salary : Write SQL statements that do the following: Calculate the average salary for all employees. Calculate the maximum salaries for exempt and non-exempt employees.

Health problem by general public : Why do you think obesity is such a major problem in the United States? And why do you think it is still viewed more as a cosmetic rather than a health problem by the general public?

Determine the reduction in inventory : A corporation with sales of $500,00 has average inventory of $200,000. The Company average for inventory turnover is four times a year.

Why diet plans fail : Why do you think so many diet plans fail? What type of diet plan would you use, if you were required to lose twenty pounds?

Effective annual rate of stretching accounts payable : C++ Notes is booming, and it requires to raise more capital. The corporation purchases supplies from a single supplier on terms of 1/10, net 20 days, and it currently takes the discount.

What problems project team encounter project-s life cycle : What are some of the typical problems a project team may encounter during a project's life cycle? How can they be resolved? Explain.

Weight cycle in terms of negative feedback loop : How might negative feedback loop explain why people who lose large amounts of weight chain that weight back? Explain the weight cycle in terms of the negative feedback loop.

Rise in accountants in the job market : The best way to do so is finding the best accountants to monitor funds and ensure that no form of embezzlement is occurring. Any thoughts?

Conduct a break even analysis : Determine how do you conduct a break even analysis and can one be done with the following data, using the numerical computations break-even analysis?

User Account

All Pages