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Questions -
Q1. Suppose a supermarket ordered 11 cases of organic vegetable soup with a list price of $18.90 per case and 4 cases of organic baked beans with a list price of $33.50 per case. The wholesaler offered the supermarket a 39% trade discount.
(a) What is the total extended list price (in $) of the order?
(b) What is the total amount of the trade discount (in $) on this order?
(c) What is the total net amount (in $) the supermarket owes the wholesaler for the order?
Q2. You invest $17,000 at 6% interest, compounded monthly, for 2 years. Use the compound interest formula to calculate the compound amount (in $) for your investment.
Q3. Suppose you wish to have $15,750 in 3 years. Use the present value formula to find how much you should invest now at 6% interest, compounded semiannually in order to have $15,750, 3 years from now. Then calculate the amount of interest.
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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