Baker's Financial Planners purchased nine new computers for $910 each. It received a 20% discount because it purchased more than four and an additional 5% discount because it took immediate delivery. Terms of payment were 5/10, n/30. Baker's pays the bill within the cash discount period. How much should the check be? (Do not round intermediate calculations. Round your final answer to the nearest cent.) Amount

Baker's Financial Planners purchased nine new computers for $910 each. It received a 20% discount because it purchased more than four and an additional 5% discount because it took immediate delivery. Terms of payment were 5/10, n/30. Baker's pays the bill within the cash discount period. How much should the check be? (Do not round intermediate calculations. Round your final answer to the nearest cent.) Amount

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
what was my supply exspense for the month if i wrote a check for $14,000, then I return $1500.00 in damaged supplies for a cash refund of $1500, then spent $10,000.00 more on supplies payable in 30 days . After inventory it shows I have $9400.00 worth of supplies left on hand.
Cook's security system has a $37,500 line of credit, which charges an annual percentage variety of a prime rate plus 4%. The starting balance on October 1st was $9100 on October 4th. They made a payment of $1200 on October 13th. The business borrowed $2500 in October 19th. They borrowed $4200 if the current prime rate is 6 %, what is the new balance in dollars rounded to your nearest cent?
New-Markups Department Store has annual credit sales of $ 300 million. John Harris, the collection manager, has estimated that it takes 10 days for a mailed payment to be credited to Newman’s account and that this time can be cut to 5 days if Newman opens up a lockbox account with a local bank. The account in which the checks are placed earns 8.4% annually. The lockbox agreement calls for a monthly payment of $1,350 and, in addition, a monthly charge of $0.06 per check. Newman’s currently processes 120,000 checks monthly. (Treat these expenses as if they occur at the beginning of the year.) a) What are Newman’s daily sales (assuming a 360-day year) b) By how much will Newman’s average bank balance increase if it adopts the lockbox? c) Should Mr Harris adopt the lockbox ? d) Suppose Newman’s has found a regular 20% of its customers account for 80% of credit sales. Should Mr Harris open up the lockbox and use it only for this 20% of the customers?
Marriott Hotels purchased eight iRobot Roomba i7+ for $940 each. It received a 15% discount for buying more than five and an additional 4% discount for immediate delivery. Terms of payment were 4/10, n/30. Marriott Hotels pays the bill within the cash discount period. How much should the check be written for?
Marriott Hotels purchased seven iRobot Roomba i7+ for $970 each. It received a 15% discount for buying more than three and an additional 4% discount for immediate delivery. Terms of payment were 2/10, n/30. Marriott Hotels pays the bill within the cash discount period. How much should the check be written for?
Power Inc. is considering shifting its credit terms from 3/15, n/30 to 4/10, n/30 in order to speed up collections. Currently, 30% of Power Inc.’s customers take the 3% discount, 35% pays on time; the rest on the 35th day. Under the new policy, 40% take the discount, half of the remaining customers pays on time while the rest pays 5 days after. More generous cash discount terms are expected to increase sales from P2,000,000 to P2,500,000 per year. Power Inc.’ variable cost ratio is 60%, the interest rate on funds invested in accounts receivable is 3%, and the firm’s income tax rate is 40%. Use 360 days/year.What is the Days Sales Outstanding before the change in credit policy?How much is the accounts receivable balance under the old credit policy?What is the incremental investment in accounts receivable? How much is the incremental sales? What is the incremental contribution margin?
Kumi Ltd permits its customers to pay with a credit card or to receive a percentage discount ? for paying cash. For credit card purchases, the company receives 97% of the purchase price one-half month later. Determine the value of ? that would make the two payment methods equivalent if the company’s annual rate of return is 14%.
Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime rate plus 4%. The starting balance on October 1 was $9,700. On October 4 they made a payment of $1,400. On October 13 the business borrowed $2,500, and on October 19 they borrowed $4,400. If the current prime rate is 8%, what is the new balance (in $)? (Round your answer to the nearest cent.) Please give Step by Step Answer Otherwise i give DISLIKE !!
CBA collects its receivables after 25 days on the average, so that they amount to P75,000. A proposal has been made to shorten the credit term to 20 days or by 5 days. Said proposal will reduce receivables (or reduce cash requirement) by P15,000, Assuming 15% cost of money, how much is the expected savings in financing charges?
Ramon Hernandez saw the following advertisement for a used Volkswagen Bug and decided to work out the numbers to be sure the ad had no errors. Cash price $7,850 Down payment $0 Annual percentage rate 12.78% Deferred price $10,715.40 or 60 payments at $178.59 per month Calculate the amount financed: $7,850 Calculate the finance charge: 2,865.40 Calculate the APR. Note: Round your answers to 2 decimal places. APR: between ??% and ??% Calculate the monthly payment by formula. Note: Round your answer to the nearest cent. Calculate the monthly payment by table lookup at 13.00%. (Use Table 14.2.) Note: Round your answer to the nearest cent. TABLE 14.2 Loan amortization table (monthly payment per $1,000 to pay principal and interest on installment loan) Terms in months 7.50% 8.00% 8.50% 9.00% 10.00% 10.50% 11.00% 11.50% 12.00% 12.50% 13.00% 13.50% 14.00% 14.50% 15.00% 15.50% 16.00% 6 $ 170.34 $ 170.58 $ 170.83 $ 171.20 $ 171.56 $ 171.81 $ 172.05 $ 172.30 $ 172.55 $…
Spring Appliances received an invoice dated August 18 with terms 2/10 E.O.M. for the items listed below. 6 refrigerators at $1030 each less 30% and 5% 3 dishwashers at $784 each less 15 and one third %, 12.2%, and 3% (a) What is the last day for taking the cash discount? (b) What is the amount due if the invoice is paid on the last day for taking the discount? (c) What is the amount of the cash discount if a partial payment is made such that a balance of $1700 remains outstanding on the invoice?