Cainhurst Inc. had sales last year totaling $530,000, and its year-end Accounts Receivable were $62,750. The firm sells on terms that call for customers to pay within 30 days after the purchase, but some customers delay payment beyond this deadline (meaning they pay late). On average, how many days LATE do customers pay? Base your answer on a 365-day year when calculating the DSO.

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Interest rate= Prime rate +4% = 8% + 4%= 12% Interest is calculated for the number of days on…

Q: When he became the president of Jem Incorporated, John Smith changed the date of the weekly payday…

A: Annual savings refers to the amount that that has been saved by the person from their income or…

Q: Your company has been offered credit terms on its purchases of 4/30, net 90 days. What will be the…

A: The an agreement to purchase products and/or services on credit rather than making immediate cash or…

Q: Rose Company currently uses maximum trade credit by not taking discounts on its purchases. The…

A: Trade credit is offered to the customers in order to encourage them for the early cash payment. Some…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Prime rate The current interest rate charged by the financial institution to its customers is known…

Q: A. DEF has total forecasted gross purchases of P4,500,000 relating to a major supplier for the…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: ection period. BECK does not offer discounts for early payment; thus, customers take the full 30…

A: Basic concept of cash discount and receivable collection period

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: Brevard Inc is considering changing its credit terms from net 55 to net 30 to bring its terms in…

A: Cost of Carrying Receivables = Sales * DSO/ Total number of Days * Variable Cost * Opportunity Cost…

Q: tore offers its salespeople a table with coefficients to be applied to the cash sale value of its…

A: Coefficients are very important in calculating the monthly payments and value of these depends on…

Q: HAPPY Company makes credit sales of P1,800,000 annually. The average age of accounts receivable is…

A: Financing Charges: It refers to those charges which a borrower pays to the lender for using his…

Q: Bulawan Coin, Inc. is considering shortening its credit period from 30 days to 20 days and believes,…

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

Q: A company buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 35…

A: Nominal Annual Cost = Discount percent(100-Discount percent) × 365 daysTotal Pay period - Discount…

Q: Mavericks Cosmetics buys $4,691,301 of product (net of discounts) on terms of 7/10, net 60, and it…

A: Effective percentage cost of trade credit considers the compounding effect. Following is the formula…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Cook security systems has line of credit = $37500 Annual charge rate = 4% On October 1, Opening…

Q: Similarly to the Gilbert Lumber Company case, suppose today is January 1, 2020 and your company,…

A: A loan amortization table is a schedule of repayment of the loan with the bifurcation of interest…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Given, Cock security system has $37500 line of credit  Annual percentage rate  = 4% october pmt -…

Q: Breeze Corp. is planning to change its credit terms from 4/10, n/30 to 5/15, n/35. Currently, 50% of…

A: Days sales outstanding refer to average number of days that an organisation or a company takes to…

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A: Given, Net purchases per day are P11,760 Interest rate is 10% Discount rate is 2%

Q: Howes Inc. buys on terms of 2/15, net 50 days. It does not take discounts, and it typically pays on…

A: Costly Trade credit= Total credit - free trade credit Purchase daily = Total purchase / number of…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Line-of-Credit refers to a set limit up-to which investor can borrow funds and interest is only…

Q: When he became the president of Jem Incorporated, John Smith changed the date of the weekly payday…

A: Peak demand or energy savings that occur in a given year are referred to as annual savings.

Q: Kirk Development buys on terms of 2/15, net 60 days.  It does not take discounts, and it typically…

A: The calculation is:

Q: A firm has total annual sales (all credit) of P1,200,000 and accounts receivable of P500,000. How…

A: Accounts receivable days = (Accounts receivables / Credit sales) x 365

Q: Brady and Sons uses accounts receivable as collateral to borrow money for operations and payroll…

A: Interest is the amount of charge that is being levied on invested amount. It can be simple interest…

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: it sales at tens o ndards would inc od form 30 days

A: Current Credit Sales = 40500000*80%= 32400,00 Account receivable current = 32400000*30/360=2700,000…

Q: nider Industries sells on terms of 2/10, net 25. Total sales for the year are $600,000. Thirty…

A: Days Sales Outstanding means the number of days taken by the firm to collect the payment from their…

Q: nider Industries sells on terms of 2/10, net 35. Total sales for the year are $600,000. Thirty…

A: Days sales outstanding means the average number of days , a customer take , to make payment. This…

Q: McEwan Industries sells on terms of 3/10, net 20. Total sales for the year are $971,000; 40% of the…

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

Q: Bulawan Coin, Inc. is considering shortening its credit period from 30 days to 20 days and believes,…

A: Total cost is sum of variable cost plus fixed cost and at breakeven point total cost must be equal…

Q: Tokyo Corporation must pay one of its suppliers P765,000. The bank requires a 15 percent…

A: Banks and financial organizations often lend money to various businesses, clients, and investors in…

Q: CA Inc. assumes new customers will default 15 percent of the time but if they don't default, they…

A: NPV = (P-V)*(1-PROB OF DEFAULT)/(R) - V   The variable cost  =  V Credit price  =  P…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Interest rate will be equal to addition of current prime rate plus annual percentage rate. = 8% + 4%…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Annual percentage rate is the effective rate of interest at which cash flows are converted into an…

Q: Lupo, Inc., has an average collection period of 52 days. Its average daily investment in receivables…

A: a) Given,  Average collection period = 52 days Average collection period = 365/ Receivables turnover…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Given Information: Credit line is $37,500Charges an annual percentage rate of 4% plus prime rate…

Q: A company uses services with charges that total $10,000 per month. The earnings credit rate is 5%.…

A: The conceptual formula used:

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Interest on Line of credit is based on the opening balance of the period before the balance is…

Q: Ammer Products has an average accounts payable balance of P850,000 and its annual net credit…

A: Accounts payable in the business means accounts of those suppliers from whom business has made…

Q: On accepting the position of Chief Executive Officer and Chairman of Cameron Machinery, John Jacob…

A: Weekly payroll = $10 million Annual payroll = $10 million x 52 weeks = $520 million Cost of…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: Given: The cook security systems having the value of $37,500 with the annual percentage rate is 4%.…

Q: A. DEF has total forecasted gross purchases of P4,500,000 relating to a major supplier for the…

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

Q: cool security systems has $37,500 line of credit , which charges an annual percentage rate of prime…

A: The closing balance can be calculated as follows :

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.