own payment: 20% nstallment sales: P545, 000 in 2020, P785,000 in 2021, and P968,000 in 2022 Markup on cost: 35% Collections after down payment: 40% during year of sale, 35% during the year aft ow much is the realized gross profit for year 2020?
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- Dimagiba Company began operation at the beginning of 2021. During the year, it had cash sales of 6,875,000 and sales on installment basis of 16,500,000. Dimagiba adds a markup on cost of 25% on cash sales and 50% on installment sales. Installments receivable at the end of 2021 is 6,600,000. The resulting realized gross profit for 2021 is:An item of merchandise costing P436,510 was sold by A, Inc. The agreed selling price was P1,000,000 payable as follows: 20% upon the signing of the contract on January 1, 2022. The balance is payable in 4 semi-annual installments every June 30 and December 31. Assume that the relevant discount rate is 12%. Present value factors are as follows: Present value of annuity of 6% over 4 periods 3.4651 Present value of annuity of 12% over 4 periods 3.0373Determine the total amount of sales in 2022The sales for the Year 2020-21 are $1,000,000 which includes receivables of $177,000. The owner is factoring the receivables to raise funds for the growth of the business. As per the conditions, there is 9.2% discount and the additional 2% charge imposed by the factor when the average collection period exceeds 30 days for each expected ten days average collection period. What is the dollar amount the owner will receive when the average collection period is 29 days?
- A. DEF has total forecasted gross purchases of P4,500,000 relating to a major supplier for the coming year. The supplier is offering a credit term of 3/15, n/45. How much is the simple annual effective cost of paying on the 45th day? B. ABC can take a 45-day loan with a 15% interest deducted in advance, to be reapplied each time. How much is the simple annual cost of the loan? C. ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest deducted in advance and bank charge of P30,000. How much is the compounded annual effective cost of the bank loan?A. DEF has total forecasted gross purchases of P4,500,000 relating to a major supplier for the coming year. The supplier is offering a credit term of 3/15, n/45. How much is the simple annual effective cost of paying on the 45th day? B. ABC can take a 45-day loan with a 15% interest deducted in advance, to be reapplied each time. How much is the simple annual cost of the loan?Calculate the annualized discount rate and annualized investment rate on the purchase of 91- day T-bill, if the face value is $3,000 and purchase price is $2,900.
- If a company purchases merchandise on terms of 1.4/20, n/30, the cash discount available (assuming a 360-day year) is equivalent to an effective annual interest rate of O 63.2%. O 12.8%. O 1.4%. O 50.4%.Your company has been offered credit terms on its purchases of 4/30, net 90days. What will be the nominal annual cost of trade credit if your companypays on the 35th day after receiving the invoice? (Assume a 365-day year.) Show your complete solution.Your company has been offered credit terms on its purchases of 4/30, net 90days. What will be the nominal annual cost of trade credit if your companypays on the 35th day after receiving the invoice? (Assume a 365-day year.)a. 30%b. 304%c. 3%d. 87%e. 156%
- Problem 6: Carmen Corporation uses the installment sales method. On January 1, 2020, The corporation sold an equipment for P2,000,000 with the following terms: 30% down payment on the date of sale and the balance is payable in four equal annual installments every December 31. The cost of the equipment is P1,200,000. Ignore the concept of time value of money. Requirement: Provide the journal entries for 2020 and 2021. Show all computations in good form.Blossom Company purchased merchandise with an invoice price of $3400 and credit terms of 2/8, n/30. Assuming a 360-day year, what is the implied annual interest rate inherent in the credit terms?Ammer Products has an average accounts payable balance of P850,000 and its annual net credit purchases is P8,750,000. Assume there are 365 days per year. What is Ammer’s payables deferral period?