Calla Lily Corp. purchases on terms of 2/8, net 45 days, does not accept discounts, and pays after 58 days. How much does the non-free trade credit cost in terms of effective annual percentage cost? (Incorporate a 365-day year)

Q: A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and…

A: Trade discount: it is a reduction granted by a supplier forms the list price of goods or services on…

Q: A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and…

A: Credit terms of 3/15, net of 30 days, Number of days to repay the loan is 50 days

Q: 7. Howes Inc. purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and…

A: The effective annual cost of not taking trade cash discount is computed as follows: - Effective…

Q: Kumi Ltd permits its customers to pay with a credit card or to receive a percentage discount x for…

A:

Q: Company X sells on a 3/10, net 90, basis. Company Y buys goods with an invoice of $2,500. a. How…

A: Calculation of Deduction Amount, Extra Credit Days and Effective Annual Rate: Excel Spreadsheet:…

Q: Barkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 22,000…

A: A) Interest expense = Note payable x interest rate % x period                            = ($22,000…

Q: If a firm is given a trade credit terms of 2/15, net 30, then the cost to the firm failing to take…

A: 1. 2/15, net 30 means if payment is made within 15 days , it will get 2% discount.  Otherwise the…

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

A: Free Trade credit refers to a type of financing wherein the buyer gets a credit period of…

Q: A car dealer carries out the following calculations. What is the annual percentage rate?   Lis…

A: As per the given information: Amount to be financed - $4,691.03 Interest rate - 10% Months of…

Q: A company is offering a 4.9% discount to receivables if they agree to pay within 45 days. The…

A: A credit discount is a discount offered to the borrower of money by the lender of money if the…

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

A: Accounts payables are the liabilities which arises due to credit purchases from the suppliers. The…

Q: A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and…

A: The credit terms of 3/15, net of 30 days means if the firm will pay the credit amount within the 15…

Q: A car dealer carries out the following calculations. What is the annual percentage rate? List price…

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

Q: Company X sells on a 2/10, net 90, basis. Company Y buys goods with an invoice of $1,500.   a. How…

A: Given values: Invoice value = $ 1500 if paid within 10 days discount = 2% with in 90 days it should…

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

A: Credit financing is a type of financing in which a purchase is made on credit, that is, the purchase…

Q: rate per period? The number of compounding period is ___ How many days are there per

A: Number of days per period are as follows:

Q: HBC Inc. buys on terms of 2/10, net 30 days. It does not take discounts, and it typically pays 30…

A: The question is related to the Free trade Credit. The details are given.  First we will calculate…

Q: A car dealer carries out the following calculations.What is the annual percentage rate?   List…

A: The APR is 19.59%.

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: westside traders normal credit terms to east-rand manufactures are 60 days but is prepared to allow…

A: Understanding the question Suppose East Rand Manufacturer has purchased goods of worth $100.   So,…

Q: A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and…

A: The question is related to cost of trade. The details are given.

Q: Newsome Inc. buys on terms of 3/15, net 45. It does not take the discount, and it generally pays…

A: Nominal annual percentage cost=[Discount rate / (100-Discounting rate ) * [365 /(Total days to pay -…

Q: A car dealer carries out the following calculations. What is the annual percentage rate? List price…

A: Solution:- Given Values, Interest (r)= 7%  Months (N) = 48

Q: The cost of not taking the discount on trade credit of 2/10, net 30 is approximately. (Use 360 days…

A: Trade credit is an agreement of commercial financing according to which a customer can buy goods or…

Q: FP Co. buys on terms 2/10, net 30, but generally does not pay until the 40 days after invoice date.…

A: FP Co. buys on terms 2/10, net 30, but generally does not pay until the 40 days after invoice date.…

Q: A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and…

A: solution given credit terms       =3/15 net 30 days firm pays in 50 days the extra days taken      =…

Q: A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Newsome Inc. buys on terms of 4/10, net 45. It does not take the discount, and it generally pays…

A: Effective annual percentage = (1+[Discount rate/(1–Discount Rate)])^n– 1 Where n= No. of days in a…

Q: Ammer Products has an average accounts payable balance of $850,000 and its annual cost of goods sold…

A: Deferrals: Deferrals are the revenues that are received but not earned, and expenses that are paid…

Q: A company is offred trade credit terms of 3/15, net 30 days. If the firm does not take the discount,…

A: The term 2/15, net 30 days means customer will get 3% discount if he pay within 15 days but here…

Q: Yesterday, Smiley Company sold $22,500 of merchandise on credit. The invoice was sent today with the…

A: Here, Value of Sales is $22,500 The discount term is 3/10 net 40 Therefore, Discount Rate is 3% if…

Q: A store will give you a 1.75% discount on the cost of your purchase if you pay cash today.…

A: The concept of the time value of money states that the same amount of money is worth more today than…

Q: The Jasmine Tea Company purchased merchandise from a supplier for $28,700. Payment was a…

A:

Q: Sasakyani Company sells to retail auto supply stores on credit terms of 2/10, n/30. Annual credit…

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

Q: A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and…

A: Discount period = 15 days Total pay period/Days credit outstanding = 50 days Rate per period = 3%…

Q: 6. GFB Co. buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 30…

A: Free trade-credit gives no cost to the company.

Q: If a firm buys under terms of 1/15, net 60, but actually pays on the 20th day and still takes the…

A: If a customer pays the amounts due on his purchase within a certain time period, he may receive a…

Q: Newsome inc. buys on terms of 3/15, net 45. It does not take the discount, and it generally pays…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and…

A: SOLUTION-   WORKING- NUMBER OF DAYS ARE THERE PER PERIOD IS 50-15 = 35 DAYS.

Q: 19. Atlanta Cement, Inc. buys on terms of 2/15, net 30. It does not take discounts, and it typically…

A: Annual percentage rate: The term annual percentage rate (APR) is also known as the nominal annual…

Q: The major supplier of SS Corp. offers credit terms of 2/10, n/35. What is the net benefit (in rate…

A: Here Credit terms 2/10, n/35 means SS Corp will get 2% discount if SS Pays within 10 days Here we…

Q: The official terms of purchases of National Co. are 2/10, net 30 but generally the company does not…

A: The non free trade credit refers to without a good credit rating, the trade credit might not be…

Q: Hail & Sons operates for 240 days in a year. It has been offered credit terms of 4/30, net 90 days.…

A: Credit term refers to a method used by the firms to encourage buyer or debtor to pay the amount of…

Q: Barkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 21,000…

A: Notes are instrument issued by company acknowledging the debt raised by company . It is a liability…

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

A: Credit terms indicate the percentage discount a firm can take off the invoice amount if payments…

Q: Company X sells on a 2/15, net 90, basis. Company Y buys goods with an invoice of $1,000.   a. How…

A: Credit sale term =2/15, net 90 Company Y buys goods of =$1000 Meaning of 2/15, net 90: It means if…