Write a memorandum laying out suggestion

Assignment Help Financial Accounting
Reference no: EM132549855

You are the payables accountant for a medium sized electrical contracting company. You are paying bills with purchase discounts but can't take advantage of them because the cash balance in the checking account is low. You approached your boss with a suggestion that the company borrow money at the bank so you can pay the bills in time to take the discounts. Your boss thinks you are a little crazy to recommend borrowing from the bank (currently charging 6% interest) to take advantage of 1-2% discounts.

Question 1 : Write him a memorandum laying out your suggestion and justifying your suggested course of action.

Question 2 : Use actual numbers in your memo. For example, if you need to borrow money to pay a $10,000 bill that offers terms of 2/10, n/30 and the loan's interest rate is 6%.

Reference no: EM132549855

Questions Cloud

By how much would the value of the company change : Garcia paper currently has production equipment, By how much would the value of the company change if it accepts the replacement project?
List all the dependencies in a dependency diagram : List all the dependencies in a dependency diagram including partial and transitive and Show the determinants and select primary key, foreign key
Why change initiatives so often fail or fall short : Explain why change initiatives so often fail or fall short because of poor management when it comes to dealing with organizational change?
Describe the formula and when would you use it : As the purchaser you will have to utilize reverse price analysis, describe the formula and when would you use it?
Write a memorandum laying out suggestion : Write a memorandum laying out your suggestion and justifying your suggested course of action. You are the payables accountant for a medium sized
Prepare the journal entry to record expense at December : On January 1, 20x4, a Big and Small Co. initiated a Share Appreciation Plan for its employees. Prepare the journal entry to record expense at December
What is the role of leaders in the change process : Do you think how they handle a new change can make or break the situation on how and if employees follow them in the change?
What total amount of income from investment should : What total amount of income and other revenue from investment should Horizon Company disclosed in its December 31, 2017 profit or loss?
Explain a time that you have used organizational learning : Explain a time that you have used organizational learning and creativity as a leader to be a better decision maker.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is its required rate of return

Bouchard Company's stock sells for $20 per share, its last dividend was $1.00, and its growth rate is a constant 6%. What is its required rate of return?

  What happens to consumer surplus in the market for lemons

An early freeze in California sours the lemon crop. What happens to consumer surplus in the market for lemons? What happens to consumer surplus in the market for lemonade? Illistrate your answers with diagrams

  Calculate amount of revenue that hearstrings will recognize

Heartsrings sells an assortment of gifts for any occasion During October Heartsring started a Gift of the month program Under the terms of this program beginning n the month of the sale, Hearstrings would select and deliver a random gift each month o..

  Variable costing income statement reconciliationwhitman

variable costing income statement reconciliationwhitman company has just completed its first year of operations. the

  How much can afford to withdraw per year

At the beginning of each year, if they retire with their $2 million nest egg as planned, and their retirement savings will still grow at 5% per year?

  Calculate the synthetic forward rate

Discuss the pros and cons of financing in unhedged Eurodollars instead of via Euro euros. As you do this you must give consideration to the foreign exchange risks associated with financing in Eurodollars.

  After-tax returns will be generated from the project

The Management of Ink’s Inc. is evaluating the following investment opportunity which will cost the firm $81,383.53 if undertaken. In addition, it is projected that the following after-tax returns will be generated from the project. What will the NPV..

  In conjunction with transaction

On March 15, Chief Company acquired 20,000 shares of its own $2 par value common shares at a cost of $17 per share. Chief originally issued the shares at $12 per share. On July 5, Chief sold 7,000 of the shares back in the open market at a price of $..

  Calculate appropriate capitalization rate on general borrow

Kingbird Company, Calculate the appropriate capitalization rate on general borrowings that would be used for capitalization of borrowing costs.

  Calculation of intrinsic value and effect on earnings

calculation of intrinsic value and effect on earnings traceable to the hedge.north shore railroad operates between

  Adoption of an activity based costing system

A company is considering the adoption of an activity based costing system because the managers suspect that their traditional costing system distorts the product costs.

  Findingnbsp present value ofnbsp winningsthe caldwell

findingnbsp present value ofnbsp winnings.the caldwell herald newspaper reported the following story frank ormsby of

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