Firm purchases goods on credit terms

Assignment Help Financial Management

Reference no: EM132016118

1. Suppose a firm purchases goods on credit terms of 3/10, net 15, and the firm always takes discounts. The cost of using the funds for six days is:?

a. ?3.00%.

b. ?4.18%.

c. 3.09%.?

d. ?0%.

e. ?3.92%.

2. Orangetree Pharma's demand for test tubes is 72,000 units. If the lead time for placing an order is 5 days, then an order should be placed at an inventory level of: (Assume 360 days in a year)?

a. ?2,500 units.

b. ?1,250 units.

c. ?1,000 units.

d. ?800 units.

e. 625 units.?

Reference no: EM132016118

Questions Cloud

Discuss the key threats and opportunities in the industry : Write a 2-3 page memorandum to your client in which you discuss the key threats and opportunities in the industry's operating environment

The cash conversion cycle of the company : The cash conversion cycle of the company is:?

Which means the firm allows its customers : A firm offers credit terms of 3/15, net 20 to its customers, which means the firm allows its customers to:

What is the nominal rate of interest convertible monthly : Immediately after making the 39th deposit, the account balance is $20991.32 dollars. What is the nominal rate of interest convertible monthly?

Firm purchases goods on credit terms : Suppose a firm purchases goods on credit terms of 3/10, net 15, and the firm always takes discounts. The cost of using the funds for six days is:?

What are accountable care organizations : Review the case study by clicking on the link. Prepare a paper that answers the following questions. What are accountable care organizations (ACOs)?

Determine the price of the video game console : Run a simulation entitled: "The Platform Wars: Simulating the Battle for Video Game Supremacy." Determine the price of the video game console

Difference between net worth increase and percentage return : What is the difference between the net worth increase and the percentage return?

Discuss the evolution of the triple aim : Discuss the evolution of the Triple Aim since it's initial implementation. Examine why the Triple Aim needs to expand to include employee satisfaction.

User Account

All Pages