Reference no: EM133141689
Question - Lyman Nurseries purchased seeds costing $25,000 with terms of 3/15 net 30 EOM on January 12.
1. How much will the firm pay if it takes the cash discount?
2. What is the approximate cost of giving up the cash discount, using the simplified formula?
Cleaner's, Inc., is switching to paying employees every 2 weeks rather than weekly and will therefore "skip" 1 week's pay. The firm has 25 employees who work a 60- hour week and earn an average wage of $12.50 per hour.
3. Using a 10% rate of interest, how much will this change save the firm annually?
Jasmine Scents has been given two competing offers for short-term financing. Both offers are for borrowing $15,000 for 1 year. The first offer is a discount loan at 8%; the second offer is for interest to be paid at maturity at a stated interest rate of 9%.
4. Calculate the effective annual rates for the discount loan.
5. Calculate the effective annual rates for the loan with interest to be paid at maturity.
Jackson Industries has borrowed $125,000 under a line-of-credit agreement. While the company normally maintains a checking account balance of $15,000 in the lending bank, this credit line requires a 20% compensating balance. The stated interest rate on the borrowed funds is 10%.
6. What is the effective annual rate of interest on the line of credit?
Horizon Telecom sold $300,000 worth of 120-day commercial paper for $298,000.
7. What is the dollar amount of interest paid on the commercial paper?
8. What is the effective 120-day rate on the paper?
On accepting the position of chief executive officer and chairman of Reeves Machinery, Frank Cheney changed the firm's weekly payday from Monday afternoon to the following Friday afternoon. The firm's weekly payroll was $10 million, and the cost of short-term funds was 13%.
9. If the effect of this change was to delay check clearing by 1 week, what annual savings, if any, were realized?
When Tallman Haberdashery, Inc., merged with Meyers Men's Suits, Inc., Tallman's employees were switched from a weekly to a biweekly pay period. Tallman's weekly payroll amounted to $750,000. The cost of funds for the combined firms is 11%.
10. What annual savings, if any, are realized by this change of pay period?
|
Health care leaders to have strong and positive mentor
: Why is it important for health care leaders to have a strong and positive mentor? Do you have a mentor? If so, share your experiences. If not, how might you fin
|
|
Prepare dynamo journal entries related to the sales
: Dynamo pays $600 cash for warranty costs on the toasters sold that year. Prepare Dynamo journal entries related to the sales
|
|
Analyze preferred leadership style of mentor
: Analyze the preferred leadership style of a mentor. Determine how personal leadership philosophy influences your mentoring style.
|
|
Record journal entries for transactions
: Withdrew cash personal use 5,000. Record journal entries for the transactions and post them to ledgers, and prepare the Trial balance
|
|
How much will the firm pay if it takes the cash discount
: Lyman Nurseries purchased seeds costing $25,000 with terms of 3/15 net 30 EOM on January 12. How much will the firm pay if it takes the cash discount
|
|
What is the balance of the capital account of jan
: Jan and Kan have capital balances of P 2,000,000 and P 2,750,000, respectively. What is the balance of the capital account of Jan after the admission of Lan
|
|
How much is the total partnership capital
: AB Partnership had a net income of P 8,000 for the month ended September 30,2019. How much is the total partnership capital
|
|
Draw the bill of material tree for the front
: Draw the Bill of Material (BOM) tree for the front and rear wheels and complete the Material Requirements Planning (MRP) and determine when to Purchase Orders
|
|
Review the Notes to the Financial Statements sections
: Review the Notes to the Financial Statements sections, specifically 'Note 4 Revenue'. Explain the different forms of revenue recorded by Xero
|