What is the effective annual percentage cost

Assignment Help Accounting Basics
Reference no: EM132108466

Question - Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 50. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its non free trade credit? (Assume a 365-day year.)

a. 20.11%

b. 21.17%

c. 22.28%

d. 23.45%

e. 24.63%

Reference no: EM132108466

Questions Cloud

Identify business that you think has unique operating model : Identify a business that you think has a unique operating model. Write a 2 page essay describing the company. What makes their operating model so unique?
The vaccinating children vs not vaccinating children : Write an essay about the Vaccinating children vs not vaccinating children. Analyze this topic in a new way utilizing skills learned in this course.
Which classical theories of organization do you relate : Which classical theories of organization do you relate to the most? Why? The response must be typed, single spaced, must be in times new roman font.
Are you afraid that whistling in the dark will cause : Have you ever wondered where superstitious behaviors originated and why they are present today?
What is the effective annual percentage cost : Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 50. What is the effective annual percentage cost
Define cultural self-awareness statement : General Professional Development Project: Using Hughes et al. (2015, p.66-68, 104-110) as a reference, each student will complete a personal professional.
Describe the social identity theory : Describe the Social Identity Theory. What is your social identity and what influences it?
Check the listings at online job board : Individually or in teams, check the listings at an online job board such as Monster, CollegeRecruiter, CareerBuilder, or CollegeGrad.
What is the total cost of the departmental work-in-process : Department A had no Work-in-Process at the beginning of the period, 1,200 units, what is the total cost of the departmental Work-in-Process Inventory

Reviews

Write a Review

Accounting Basics Questions & Answers

  What are the monthly payments at the end of each month

What are the monthly payments at the end of each month, What is their total interest payment

  Omegas charitable contributions deduction

What is Omega's charitable contributions deduction for the current year and its charitable contributions carryover to next year, if any?

  What is pack net income using accrual accounting

Pack had the following transactions for 2006. Sales on account, $6,000. What's Pack's 2006 net income using accrual accounting

  What is a strictly selfish commercial view

What is a strictly selfish commercial view? Why should a professional abandon the strictly selfish commercial view and keep in mind the advantage of the client?

  Business solutions sells upscale modular desk units and

business solutions sells upscale modular desk units and office chairs in the ratio of 21 desk unitchair. the selling

  Using exhibit 7-13 as a guideprepare a quantitative

1. using exhibit 7-12 as a guide compute the product margin for the ex300 and the tx500 under the companys traditional

  Amount of annual depreciation by straight-line method

Determine the amount of annual depreciation by the straight-line method. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method.

  How is the auditors assessment of control risk affected

How is the auditor's assessment of control risk affected if a documented control procedure is not operating effectively? Explain the effect of such an assessment on the nature of audit tests of account balances.

  On january 2 2006 pagan corporation acquired 40 of the

on january 2 2006 pagan corporation acquired 40 of the outstanding common stock of sancto company for 1000000. on that

  Critical analysis of some of the complexities

ACCG923 Accounting Standards and Practice - Financial Reporting Disclosures in the Australian Corporate Sector - critical analysis of some of the complexities

  What type of exchange rate movement would bank concerned

If a U.S. bank is holding Japanese yen in its portfolio, what type of exchange rate movement would the bank be most concerned about?

  Present entries to record the transactions

On August 1, Year 1, Ant Company sold Bee Company $1,500,000 of 10-year, 6% bonds, dated July 1 at 100 plus accrued interest. On March 1, Year 2.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd