How much interest are you paying implicitly

Assignment Help Financial Management

Reference no: EM131077866

You place an order for 320 units of inventory at a unit price of $180. The supplier offers terms of 3/15, net 30.

a-1 How long do you have to pay before the account is overdue? Days until overdue days a-2 If you take the full period, how much should you remit?

Remittance $

b-1 What is the discount being offered?

Discount offered %

b-2 How quickly must you pay to get the discount?

Number of days days

b-3 If you do take the discount, how much should you remit?

Remittance $

c-1 If you don’t take the discount, how much interest are you paying implicitly?

Implicit interest $

c-2 How many days’ credit are you receiving?

Days' credit days

Reference no: EM131077866

Questions Cloud

What are the current carrying costs : Louise Manufacturing uses 2,600 switch assemblies per week and then reorders another 2,600. The relevant carrying cost per switch assembly is $10.50, and the fixed order cost is $1,300. What are the current carrying costs? Calculate the economic orde..

Long term debt and preferred stock : A manufacturing facility at a cost of $80MM. is looking for a smart investment decision to expand the company. Analysis has indicated there would be $16,000,000 in Operating cash inflows (savings) each year for the first 5 years. Preferred stock – Fi..

Can we get rid of the middleman : Assume that you have a local retail furniture store in your area that sells direct to the customer thereby eliminating the middleman. Assume that the store does not manufacture the furniture. The store claims that it passes these cost savings on to y..

Average accounts receivable figure : Skye Flyer, Inc., has weekly credit sales of $48,400, and the average collection period is 18 days. What is the average accounts receivable figure?

How much interest are you paying implicitly : You place an order for 320 units of inventory at a unit price of $180. The supplier offers terms of 3/15, net 30. How long do you have to pay before the account is overdue? Days until overdue days a-2 If you take the full period, how much should you ..

Calculate WACC using market value weights : WACC The Patrick's Company's year-end balance sheet is shown below. Its cost of common equity is 16%, its before-tax cost of debit is 13%, and it marginal tax rate is 40%. Assume that the firms long term debt sells at par value. The firm has 576 shar..

What is the reduction in outstanding cash balances : It takes Cookie Cutter Modular Homes, Inc., about six days to receive and deposit checks from customers. Cookie Cutter’s management is considering a lockbox system to reduce the firm’s collection times. What is the reduction in outstanding cash balan..

What is the firms market value capital structure : Organic Produce Corporation has 9.1 million shares of common stock outstanding, 660,000 shares of 7.1 percent preferred stock outstanding, and 191,000 of 8.3 percent semiannual bonds outstanding, par value $1,000 each. what rate should the firm use ..

Job-seeking expenses are deductible : Job-seeking expenses are deductible if incurred by an individual who is presently employed and looking for work in the same trade or business. only if the individual actually finds a new job. regardless of whether or not the individual finds a new jo..

User Account

All Pages