What is the retailer effective cost of trade credit

Assignment Help Financial Accounting

Reference no: EM133433897

Question: A large retailer obtains merchandise under the credit terms of 1/20, net 45, but routinely takes 50 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's effective cost of trade credit? Assume a 365-day year. Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM133433897

Questions Cloud

What is the acquisition cost of the? land : To prepare for construction on the new? facility, removed an old storage building at a cost of $25,500 and acquired building permits for $2,800.

Compute the margin of safety in sales revenue : Compute the unit contribution margin and the units that must be sold to break even. Suppose that 45,000 units are sold above the breakeven point.

Consider how finance is related to the topic : consider how finance is related to the topic. For example, can technology decrease the cost of care? Another example might be to examine what sort of financial

What additional legal and managerial changes would you : What additional legal and managerial changes would you suggest to prevent the use of accounting tricks to manipulate corporate earnings

What is the retailer effective cost of trade credit : What is the retailer's effective cost of trade credit? Assume a 365-day year. Do not round intermediate calculations. Round your answer to two decimal places.

Developing a realistic budget : Estimate your budget for your Key Assignment project. You should apply 2 of the above methods to determine a worst-case scenario budget.

What is the amount of interest in the first annual payment : Equal principal and interest payments of $11,231 are due each December 31. What is the amount of interest in the first annual payment? What is the amount

What would be the new ccc : all without affecting sales or cost of goods sold? Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000.

Do you think information systems is vital for our economy : Do you think Information Systems is vital for our economy and our society. What about supply Chain Management?

User Account

All Pages