Apricot, Inc purchased a new machine on November 1, 2017 for $1,000,000 on credit. The supplier has offered Apricot terms of 2/10, net 45. The bank has a current interest rate of 16 percent.  Assume a 365 day year.       (a)  Compute the cost of giving up cash discount. $200,000       (b)             What is the effective rate of interest if the firm decides to take the cash discount by borrowing money on a discount basis?

Q: Thornton borrowed $250,000 at a rate of 7.25%, simple interest, with interest paid at the end of…

A: Simple interest is simple interest that means there is interest on the principal amount only and…

Q: Find the amount to be repaid. How much will the interest be at the repayment date if the following…

A: Information Provided: Amount borrowed = P5,000.00 Simple interest = 6.2% Amount borrowed on = Nov 2,…

Q: On December 31, 2016, London Bank granted a P5,000,000 loan to borrower with 10% stated rate payable…

A: Debt restructuring is the process in which the lender of the money negotiates with the borrower…

Q: During the last week of March, Siro Stereo's owner approaches the bank for a $125,000 loan to be…

A: Cash collections are important to be known for preparing the cash budget and to know the cash…

Q: The sales for the Year 2020-21 are $1,000,000 which includes receivables of $177,000. The owner is…

A: Average days to collect accounts receivable (average collection period): This ratio measures the…

Q: Apricot, Inc purchased a new machine on November 1, 2017 for $1,000,000 on credit. The supplier has…

A: The question is based on the concept of Financial analysis

Q: On January 1, 2012, Chan Enterprises borrowed $100,000 from a bank on a thre year mortgage with an…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : On 1…

Q: On January 1, 20X1, Wade Crimbring, Inc., a dealer in used manufacturing equipment, sold a CNC…

A: Here question is multi sub part question well will solve for first three sub part as well.  If you…

Q: João, owner of a small clothing store, found that his company's cash needed funds in the form of…

A: Given: Amount required for payment to employee : $35000 Amount held in duplicates =$42000 Number of…

Q: On January 1, 20X1, Wade Crimbring, Inc., a dealer in used manufacturing equipment, sold a CNC…

A: Notes receivable are usually a non-current asset which carries a fixed rate of interest and the…

Q: eyton Company deposited $12,000 in the bank today, earning 12% interest. Peyton plans to withdraw…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: On April 3, the Mears Flag Company borrowed $15,000 to pay for start-up costs for its new showroom.…

A: Simple interest means that an account holder will only gain interest on the principal and the…

Q: If the total Accounts Receivable of HAPPY ENTERPRISES is 560,000 and gives its customers a 5%…

A: Accounts Receivable means accounts of those customers to whom business has made credit sales on…

Q: company borrowed P45,200 from a savings and loan association that charges 14% converted quarterly.…

A: Loan are paid by the equal periodic payments that carry the payment for interest payment and also…

Q: On January 1, 2020, Flounder Furniture Ltd. borrowed $3 million (face value) from Aurora Inc., a…

A: Notes are the financial instruments which are quite similar to bond as they have maturity period and…

Q: y Company purchased some machinery and gave a five-year note with a maturity value of Php20,000.…

A: Solution: Time = 5 Years (N) Maturity Value of Note = $20,000 (A) Method of Discounting- Monthly (12…

Q: Robinson’s, an electrical supply company, sold $7,800 of equipment to Jim Coates Wiring, Inc. Coates…

A: The net proceeds refer to the net amount received in the hands of the seller. It includes deduction…

Q: Dayannara Bank loaned P5,000,000 to Dama Company on January 1, 2007. The terms of the loan require…

A: In order to determine the impairment loss, the present value of the loan is required to be…

Q: Also, what is the total amount of interest expense Jimbo will pay over the life of the loan?

A: Determine the Present value (P).

Q: Which interest rate compounded annually is Watson paying on this loan?

A: Information Provided: Loan amount = $44,940 Periodic payment = $10,000 Years = 10

Q: Robinson's, an electrical supply company, sold $3,800 of equipment to Jim Coates Wiring, Inc. Coates…

A: Promissory Note is issued for the purpose of holding some capital for the certain period of time. It…

Q: Compute the interest expense due each month. Show the journal entry to recognize the interest…

A: Introduction:   A short-term notes payable is a promise to pay the amount of loan at a fixed rate…

Q: On July 1, 2020 Trolley & Train World borrowed money from First Friendly National Bank by issuing a…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: On January 1, 2020, Flounder Furniture Ltd. borrowed $3 million (face value) from Aurora Inc., a…

A: In finance, the term promissory note represents a written document in which one person promises to…

Q: Racman, Inc. needs P2,000,000 to finance its extension program. Racman, Inc. is negotiating a loan…

A: The nominal interest rate represents the interest rate mutually agreed in a financial agreement…

Q: On february 5, 2018, nicanor merchandising has purchased goods on account amounting to 500,000 with…

A: 3. If Nicanor do not pays within discount period then discount will not given to Nicanor Discount=…

Q: 1. CM Company borrowed 2,000,000 from a bank on June 30, 2015. The loan has an annual interest rate…

A: Loan and its repayment: A loan that's taken out by an individual or a company is usually repaid in…

Q: 10.  Apricot, Inc purchased a new machine on November 1, 2017 for $1,000,000 on credit. The supplier…

A: 10. The conceptual formula in the mathematical equation:

Q: A merchant sells a product on credit for S/ 50,000 and offers to pay it to a client in three bills…

A: 1. The face value of the bills.   Particulars Bill 1 Bill 2 Bill 3 Credit sales amount…

Q: On July 1, 2020 Trolley & Train World borrowed money from First Friendly National Bank by issuing a…

A: Effective interest rate is calculated after considering all the compounding effect.

Q: ABC Co. has a credit purchase of P40,000 with terms 2/10 net 30 with its supplier. Based on past…

A: If ABC Co. has a credit purchase of P40,000 with terms 2/10 net 30 with its supplier.   Discount of…

Q: On March 1, 2020 Giant Jumbo Clown Costumes borrowed money from Second Friendly National Bank by…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: On December 31, 2016, Rocky Bank has a loan receivable of P4,000,000 from a borrower that it's…

A:

Q: CM Company borrowed 2,000,000 from the bank on June 30, 2015. The loan has an annual interest rate…

A: A loan appears to be an engagement where a lender makes funds available to another party in return…

Q: Windsor Company borrowed €1625000 from BankTwo on January 1, 2019, in order to expand its mining…

A:

Q: On January 1, 20X1, Wade Crimbring, Inc., a dealer in used manufacturing equipment, sold a CNC…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Campbell Computing Inc. expects to have sales this year of $30 million under its current credit…

A: Solution a. The amount of bad debt loss of the company this year is calculated as follows:…

Q: Robinson’s, an electrical supply company, sold $4,800 of equipment to Jim Coates Wiring, Inc. Coates…

A: Promissory note is a mode of payment through which one party make promise to pay a certain amount of…

Q: Pamela borrowed $12,000 for investment purposes on March 12 on a demand note providing for a…

A: In the given question:-  Pamela borrowed $12000.  We have been given four different dates for…

Q: 00 to one of its suppliers. The supplier has offered a trade discount of 2/10 net 30. Slingshot can…

A: Given: It owes 40,000 to one of its suppliers with 2/10 net 30.. It includes funds for 20 days at a…

Q: Oakwood Plowing Company purchased two new plows for the upcoming winter. In 200 days, Oakwood must…

A: The conceptual formula used:

Q: Use the information presented below in answering questions 11-15.   On December 31, 2018, Tina…

A: "As per the policy of our company, we are allowed to answer only the first three sub-parts in case…