What is the effective annual rate of interest

Assignment Help Financial Accounting
Reference no: EM132885445

Company X sells on a 2/15, net 90, basis. Company Y buys goods with an invoice of $1,000.

Problem 1: How much can company Y deduct from the bill if it pays on day 15? (Do not round intermediate calculations.)

Problem 2: How many extra days of credit can company Y receive if it passes up the cash discount?

Problem 3: What is the effective annual rate of interest if Y pays on the due date rather than day 15? (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Reference no: EM132885445

Questions Cloud

What is the net present value of the the project : It has a single payoff at the end of year 4 of $6,640. What is the net present value (NPV) of the the project if the company's cost of capital is 8.39 percent?
Case study-tenet-does getting lean mean getting mean : Tent Healthcare Corporation grew to become the nation's second-largest hospital chain by acquiring other health care providers and turning them into profit cent
Find treasury stock on the balance sheet at december : Find treasury Stock on the balance sheet at December 31, Year 1, equals. In Year 1, Stock to the Hand, Inc., issued 30,000 shares of the 300,000 shares.
Clashing viewpoint in adulthood development : You will choose what you think is an important clashing viewpoint in adulthood development and describe both viewpoints
What is the effective annual rate of interest : What is the effective annual rate of interest if Y pays on the due date rather than day 15? (Use 365 days in a year. Do not round intermediate calculations.)
Discuss two or three barriers to effective communication : Discuss two or three barriers to effective communication and how you can overcome each.
Behavioral interview and situational interview questions : How would you differentiate between behavioral interview and situational interview questions?
Delivering effective bad-news message : Describe two or three techniques you can apply when delivering an effective bad-news message and why each is important.
What will be the change in the firm total monthly profits : What will be the change in the firm's total monthly profits on a present value basis under these conditions? (Do not round intermediate calculations.)

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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