Supplier offers terms-what is the discount being offered

Assignment Help Financial Management

Reference no: EM13943015

You place an order for 2,100 units of Good X at a unit price of $58. The supplier offers terms of 1/30, net 35.

Requirement 1. How long do you have to pay before the account is overdue? (b) If you take the full period, how much should you remit?

Requirement 2: (a) What is the discount being offered? (b) How quickly must you pay to get the discount? c) If you do take the discount, how much should you remit?

Requirement 3: (a) If you don’t take the discount, how much interest are you paying implicitly? Implicit interest $ (b) How many days’ credit are you receiving?

Reference no: EM13943015

Questions Cloud

Define nigrescence : Define Nigrescence, Who are the theorists and what are the stages

What is the average level of the companys free trade credit : A firm purchases $4,562,500 in goods over a 1 year period from its sole supplier. The supplier offers trade credit under the following terms: 2/15, net 50 days. Davis finally chooses to pay on time (pay in the 50th day) but not to take the discount. ..

Estimate the effective cost of the commercial paper : Ralph, treasurer for M and M Products, Inc., recently updated his firm’s short-term cash forecast only to discover that the firm will suffer a cash shortage of $15 million for a period of 30 days. One alternative is to liquidate a portion of his mark..

Define what is meant by power efficiency : Order the following modulation types in terms of spectral efficiency (best to worse) and explain why (be specific, show a number and how you got it): 64-QAM, QPSK, 8-PSK, and BPSK. Assume that the r=0, perfect filtering.

Supplier offers terms-what is the discount being offered : You place an order for 2,100 units of Good X at a unit price of $58. The supplier offers terms of 1/30, net 35. What is the discount being offered? How quickly must you pay to get the discount? If you do take the discount, how much should you remit?

Estimate the cost of credit line : You recently approached your bank about establishing a credit line facility. The terms offered by your bank include a nominal rate of prime + 1.5% (prime is currently 5%) on the amount borrowed, a commitment fee of 25 basis points on the unused porti..

Consider a demand-paging system : Consider a demand-paging system with the following time-measured utilizations

Process for troubleshooting network problems : What is the best process for troubleshooting network problems? Research a unique news story or article related to Information Technology. Post a summary of what you learned, please also provide a link to the original article. Source is your choice..

Characteristic of the discipline of philosophy : In Apology, Socrates refers to himself as a gadfly. Explain how this metaphor is considered to be characteristic of the discipline of philosophy and its relationship with other academic and intellectual pursuits

User Account

All Pages