Ex10-Transaction Exposure

7. Size of Accounts Receivable [LO1] Essence of Skunk Fragrances, Ltd., sells 7,900 units of its perfume collection each year at a price per unit of $385. All sales are on credit with terms of 1/10, net 40. The discount is taken by 65 percent of the customers. What is the amount of the company's accounts receivable? In reaction to sales by its main competitor, Sewage Spray, Essence of Skunk is considering a change in its credit policy to terms of 2/10, net 30 to preserve its market share. How will this change in policy affect accounts receivable?

Problem 11 Consider the following information about two alternative credit strategies: Refused Credit Price per unit Cost per unit Grant Credit P75 P71 P32 P33 Quantity sold per quarter Probability of payment 6,200 6,900 1.0 .90 The higher cost per unit reflects the expense associated with credit orders, and the higher price per unit reflects the existence of a cash discount. The credit period will be 90 days, and the cost of debt is .75 percent per month. Required: Based on this information, should credit be granted? a. b. In (a), what does the credit price per unit have to be a break even? c. In (a), suppose we can obtain a credit report for P1.50 per customer. Assuming that each customer buys one unit and that the credit report correctly identifies all customers who will not pay, should credit be extended?

Date Date 1/9/18 10/9/18 Dollar Rate Dollar Rate 1,16 Price in Euros Price in Dollars Price in Dollars Difference 1,18 Model 300 VRG 625 RTM 475 GRM 200 GRM 650 MTY 600 RTM 500 MTY 46.900 € $55.342 $54.404 $938 66.700 € $78.706 $77.372 $1.334 96.100 € 122.600 € 164.900 € 214.400 € 247.300 € $113.398 $111.476 $1.922 $144.668 $142.216 $2.452 $194.582 $191.284 $3.298 $252.992 $291.814 $248.704 $286.868 $4.288 $4.946 1) Most of your exports to the US belong to the model 600 RTM. The experience shows that, if the price of this product rises over 215000 dollars, the exported units will be reduced. If this product is priced in euros, and assuming the trend shown in question 1 continues, what would be the consequences for your company's exports?

Number 6 a and b plz

Year 10 1 2 3 4 5 Units 30,000 66,000 73,000 80,000 88,000 Price (E) 250 278 308 342 380 Variable 140 147 154 162 170 cost per unit (E) Exchange rate ($/E) 2.0000 1,96 1.92 1.89 1.85 1.82

First part only

Question 36 A company has daily purchases of $10,000 from its supplier.  The supplier offers trade credit under the following terms:  3/20, net 50 days.  The company finally chooses to pay on time (pay in the 50th day) but not to take the discount. We assume 365 days per year. What is the average level of the company’s free trade credit? ______     $30,000     $170,000     $200,000     $300,000 Question 37 Based on the information from Question 36, what is the average level of the company’s total trade credit?     $170,000     $200,000     $300,000     $500,000 38 . Based on the information from Question 36, what is the average level of the company’s costly trade credit?     $170,000     $200,000     $300,000     $500,000 Question 39 Based on the information from Question 36, what is the nominal annual cost of the firm’s costly trade credit?     28.6%     29.3%     33.5%…

Help me answer rhis prob 12

F16 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 Loan Amount 3 Annual Interest Rate 4 #times per year interest accrued 5 Periodic Rate 6 Term (years) 7 #payments per year 8 Number of payments 9 Balloon (balance after final payment) 10 Points paid at origination to get loan 11 12 32 33 34 35 36 37 38 39 40 DA Home Insert Cut Copy Format 41 42 Paste 43 44 ▾ Ready Sheet1 ✓ fx A Page Layout Calibri (Body) ▼ 11 BIU Sheet2 ▼ Formulas + B $1,000,000.00 7.66% 12 0.64% 30 12 360 Data A- A ▾ C Review View $0.00 AKA "Fully Amortizing" 1.50% t D 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 22 EE E Wrap Text + Merge & Center ▾ Balance in (t): B_(t) $1,000,000.00 F X Project Custom Interest in (t+1): (i/m)*B_t $6,383.33 % % > G +.0 .00 Payment in (t+1) $7,102.03 .00 ➡.0 Conditional Format Formatting as Table H Balance in (t+1): B_(t+1) $999,281.30 $0.00 I Cell Styles J H Insert X H Delete K Format Principal paid in (t+1)(=PMT-INT) 圓 Q Search…

Calculate (a) the amount financed, (b) the total finance charge, and (c) APR by table lookup.(Use Table 14.1.) Note: Do not round intermediate calculations. Round the Finance charge to the nearest cent. Purchase price of a used car 5,773 Down payment $ 1,273 Number of monthly payments 48 Amount financed Total of monthly payments 5,829.76 Total finance charge APR

3 4 C9 9 10 AutoSave Off H File Home X 13 Paste 14 15 Clipboard 17 Problem: Insert Page Layout Calibri BIU U X✓ fx 5 6 Assumption(s) 7 The following information has been gathered: B 8 1) The firm expects 2020 sales to total $ Marketable securities are expected to 11 12 5) Inventories represent 6) A new machine costing 2) remain unchanged 3) The desired minimum cash balance 4) Accounts receivable represents 32°C Mostly sunny Font Total depreciation for the year will be 7) Accounts payable represent H ✓11 Accruals, other current liabilities, long- term debt, and common stock are 16 8) expected to remain unchanged 9) The firm's net profit margin is 10) It expects to pay out cash dividends of Ready Accessibility: Investigate $ Formulas Data Review View Automate Help 11 A A ~A~ $ $ 18 19 20 The December 31, 2019, balance sheet follows: > Horizontal Analysis V ī FIRSTNAME_LASTNAME_Accounting-Finance MBA Assignm.... Saved to this PC ✓ ■ V C Mitchell's Industries wishes to prepare a pro forma…

No chatgpt answer i will give 5 upvotes

Problem 5-10 Comparing Costs of Checking Accounts [LO5-5] What would be the net annual cost of the following checking accounts? a. Monthly fee, $2.40; processing fee, $0.20 cents per check; checks written, an average of 25 a month. Note: Do not round intermediate calculations. Input the answer as a positive value. Round your final answer to 2 decimal places. Net annual cost b. Interest earnings of 5 percent with a $500 minimum balance; average monthly balance, $600; monthly service charge of $18 for falling below the minimum balance, which occurs three times a year (no interest earned in these months). Note: Do not round intermediate calculations. Input the answer as a positive value. Round your final answer to 2 decimal places. Net annual cost

Please do not give solution in image format thanku

Sites JESS Time Remaining: 01:04:03 A Hide Time Remaining A Part 1 of 2- Question 5 of 50 1 Points The budget of a company for next period shows that it would breakeven at a sales value of GHC800000 with fixed cost of GH¢320000. What sales value should the company target to derive a profit of GH¢200000 in the next period? O A. GHC1320000 OB. GHC1300000 OC. GHC1000000 O D. GHC866667 Reset Selection 11:59 3/18/2 Ps

A2

E3 A 2 Month 3 January February March Sales 6-Month average B Qfx $81,000.00 $80,000.00 $88,000.00 $92,000.00 $110,000.00 $108,000.00 5 6 April 7 May 8 June 9 10 11 12 13 $500 Fixed Fee, 2% commission 14 $1000 Fixed Fee, 1% commission 15 $2000 Fixed Fee, 0.5% commission 16 D 200 100 50 E F Fixed fee Guest count Variable expenxe Total expense Cost% 500 4800 500 5120 500 5006 500 4960 500 5140 500 5300 G H

$120 $90 $60 $30 2- Assuming a 10% interest rate, find the value of E that makes the disbursements equivalent to the receipts (the overall worth sums to "Zero") in the following cash flow diagram. 0-1 E E E EE

QUESTION 6 This year your company has $34 million of credit sales and average receivables of $7 million. Your company factor receivables by discounting 1%. What is the APR of factoring the receivables? 1.01% 1.00% 4.91% 5.00% 4.80%

VitalSource Account Center: Use X chapter05/4/2/28/6/40/2/2/4 G Sign in - Google Accounts Determine the future value of the following single amounts: 1234 Invested Amount $15.000 20,000 30,000 50,000 Interest Rate 6% 8 12 4 No. of Periods 12 ខសង 10 20 12 QA Aug 13, 2023, 12:15 PM

plan A plan B plan C Down payment 1,789.91 2,309.65 3,764.51 Annual payments 5,097.70 7,450.16 9,845.78 Years 20 20 20 Discount rate 12% 12% 12% What is the present value of plan B?

4. Size of Accounts Receivable [LO1] Skye Flyer, Inc., has weekly credit sales of $21,900, and the average collection period is 33 days. What is the average accounts receivable figure?

1. Cash Discounts [LO1] You place an order for 300 units of inventory at a unit price of $140. The supplier offers terms of 1/10, net 30. a. How long do you have to pay before the account is overdue? If you take the full period, how much should you remit? b. What is the discount being offered? How quickly must you pay to get the discount? If you do take the discount, how much should you remit? 701 c. If you don't take the discount, how much interest are you paying implicitly? How many days’ credit are you receiving?

Problem 9-09 If a firm has sales of $20,689,000 a year, and the average collection period for the industry is 50 days, what should this firm's accounts receivable be if the firm is comparable to the industry? Assume there are 365 days in a year. Do not round intermediate calculations. Round your answer to the nearest dollar. $

ST Unit 8 Quest (11U) + pQLSf8ziezOsWz6j9T7OGVQSHI-6ls9bQrlQevfkKxle-RtQ3Rlg/formResponse Question 6: How much was the amount of the original loan? Regular Payment Rate of Compound Interest per Year Compounding Period semi-annual $1575 every 6 months 5.4% $8445.09 $17076.01 a. b. $14 444.94 $24 143.61 a b C. d. Time 6 years

51:48 ces Problem 7-26 Apollo Data Systems is considering a promotional campaign that will increase annual credit sales by $556,000. The company has a 40% cost of goods sold and will require investments in accounts receivable, inventory, and plant and equipment. The turnover for each is as follows: Accounts receivable Inventory Plant and equipment 5x 8x 2x All $556,000 of the sales will be collectible. However, collection costs will be 2 percent of sales, and production and selling costs will be 70 percent of sales. The cost to carry inventory will be 10 percent of inventory. Amortization expense on plant and equipment will be 8 percent of plant and equipment. The tax rate is 30 percent. Inventory is calculated using cost of goods sold and not sales. a. Compute the investments in accounts receivable, inventory, and plant and equipment based on the turnover ratios. What is the total value of the investment made? Accounts receivable Inventory Plant and equipment $ $ Activate Windows Go…

30 [Question text] Syarikat Sinergi is considering a new credit policy. The current policy is cash only. The new policy would involve extending credit for one period or net 30. Based on the following information, determine if the switch is advisable. The interest rate is 2.5% per period.   CURRENT POLICY NEW POLICY Price per unit RM175 RM175 Cost per unit RM130 RM130 Sales per period in units 1,000 1,100   Select one: A. Yes, the switch should be made because the NPV is RM8,000. B. No, the switch should not be made because the NPV is -RM8,000. C. Yes, the switch should be made because the NPV is RM4,500. D. No, the switch should not be made because the NPV is -RM4,500.

3

Problem 16-09 (Cost of Trade Credit) Question 5 of 7 ▸ Check My Work Cost of Trade Credit Grunewald Industries sells on terms of 3/10, net 40. Gross sales last year were $4,124,500 and accounts receivable averaged $423,750. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewald's nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.) Do not round intermediate calculations. Round your answers to two decimal places. Nominal cost of trade credit: % Effective cost of trade credit: %

Question 27 P Flag question The big C is considering a change in its cash-only sales policy. The new terms of sale would be one month. The required return is 1.6 percent per month. Based on the following information, what is the cost of switching to the new policy? Current policy New policy Price per unit (RM) Cost per unit (RM) Unit sales per month Select one: A. RM615,000 B. RM845,000 OC RM735,500 Not yet answered Marked out of 1.00 OD. RM905,000 800 425 1,110 800 425 1,150