What is the effective rate

Assignment Help Accounting Basics
Reference no: EM133188355

Questions -

Q1. What is the effective rate of a 15% discounted loan for 90 days, P200,000, with 10% compensating balance?  Assume 360 days per year.

Q2. Your firm buys on credit terms of 2/10, net 45, and it always pays on Day 45. If you calculate that this policy effectively costs your firm P157,500 each year, what is the firm's average accounts payable balance?

Q3. ABC Company has an inventory order quantity of 10,000 units and a safety stock of 2,000 units. The cost per unit of inventory is P5, and the carrying cost is 10% of the average value of inventory. The annual inventory carrying cost for the company is?

Reference no: EM133188355

Questions Cloud

Determine the total amount of expected increase : If the company can increase its sales volume by 10%, Determine the total amount of expected increase in net operating income will be
What the maximum amount that the company can pay : Mantine Inc has prepared the following budget data: Sales Volume 20,000. What the maximum amount that the company can pay
Conduct the necessary research : Compile an evidence-based shortlist of up to five clubs to consider for investment, and make a final recommendation
What is the average amount of receivables : ABC Company sells on terms 3/10, net 30. Total sales for the year are P900,000. What is the average amount of receivables
What is the effective rate : What is the effective rate of a 15% discounted loan for 90 days, P200,000, with 10% compensating balance? Assume 360 days per year
Understanding of cultural diversity in Australia : Understanding of cultural diversity in Australia and to develop a cultural safety strategy - create a digital presentation (using software like PowerPoint
What will be the percentage change in the share price : What will be the percentage change in the share price? Assume the stock is expected to pay a constant dividend in perpetuity
Determine the total current assets as of December : No dividends were declared during 2022 and there were no other changes in shareholders' equity. Determine the total current assets as of December 31, 2022
What can be the supply chain management for this shop : What can be the supply chain management for this shop? How do you manage inventory for this clothing shop

Reviews

Write a Review

Accounting Basics Questions & Answers

  How would your error affect break-even sales

How would your error affect break-even sales and operating income under the proposed sales commission plan? After considering all factors

  Prepare pension journal entries recorded by Crane

Interest/discount rate on the DBO and plan assets 10%. Prepare pension journal entries recorded by Crane in 2020

  Describe the various risks a small company needs to mitigate

Describe the various risks a small company needs to mitigate. Describe the types of policies and coverage needed for a typical small business.

  Securities paying negligible dividends

If he sells the lots, Peter will invest the proceeds in his portfolio of stocks. He invests in growth securities paying negligible dividends that provide their return through appreciation. Peter expects his security portfolio to increase an averag..

  Reduce goal incongruence

What is goal incongruence? How can using the metric "return on investment" for performance evaluation lead to goal incongruence?

  What amount of compensation expense will Gretta recognize

During 20X4, 35 employees leave. What amount of compensation expense will Gretta recognize in 20X3, related to these options

  Deloise company purchased a new machine on september 1 2012

deloise company purchased a new machine on september 1 2012 at a cost of 91920. the company estimated that the machine

  Discuss gain or loss on the early redemption of the bonds

Calculate the gain or loss on the early redemption of the bonds. Round your answer to the nearest whole dollar

  Calculate the amount of the asset and liability of Timmer

Timmer estimates that the equipment has a fair value of $300,000, an economic life of 5 years, Calculate the amount of the asset and liability of Timmer

  Which information is good news for the company

You are required to think carefully which information (if any) is good news for the company, and which (if any) is bad news.Assuming that Net income

  Find how often does natalie need to count inventory

Find how often does Natalie need to count inventory if she maintains it using the perpetual system? In contrast, does she need to count inventory at all?

  Determine the expected cash disbursements during May

Cash payments for operating expenses in May will be $119,500; Parson's cash balance on May 1 was $127,800. Determine the expected cash disbursements during May

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