What is the retailers effective cost of trade credit

Assignment Help Financial Management

Reference no: EM131903768

1. A large retailer obtains merchandise under the credit terms of 3/10, net 40, but routinely takes 55 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 365 days in year for your calculations. Do not round intermediate calculations. Round your answer to two decimal places.

2. A chain of appliance stores, APP Corporation, purchases inventory with a net price of $650,000 each day. The company purchases the inventory under the credit terms of 1/15, net 35. APP always takes the discount, but takes the full 15 days to pay its bills. What is the average accounts payable for APP? Round your answer to the nearest dollar.

Reference no: EM131903768

Questions Cloud

Why do distinguished names have to be unique but not rdns : Can DTS run without a UTC source connected to any of the machines in the system? Why do distinguished names have to be unique, but not RDNs?

Describe the skills and abilities needed for successful : ?1. Describe the skills and abilities needed for successful event management.

Awarding salary increases : Because pay for performance is an important factor governing salary increases, managers must be able to defend the compensation recommendations

Why are rpc endpoints assigned dynamically by the rpc daemon : Why are RPC endpoints assigned dynamically by the RPC daemon instead of statically? A static assignment would surely be simpler.

What is the retailers effective cost of trade credit : What is the retailer's effective cost of trade credit? Assume 365 days in year for your calculations. Do not round intermediate calculations.

To what extent can one develop these characteristics : To what extent can one develop these characteristics? Please support your points with in-text citations and include a reference list.

What is the monthly mortgage payment for a fixed rate : What is the Monthly Mortgage Payment for a 30-yr fixed rate mortgage with an interest rate of 4.25%, 1.5 points and $3000 in fees on a home.

Influences the current health care practice : Discuss how Evidence base practice ( EBP) influences the current health care practice. List examples of challenges or barriers to EBP. Please cite

Which kind of mutex should be used to protect data : A programmer has just written a piece of multithreaded code that uses a private data structure. Which kind of mutex should be used to protect it?

User Account

All Pages