Dome Metals has credit sales of $522.000 yearly If Dome offers a 2 percent discount for payment in 10 days what wil the average accounts recevabie balance be? Assume al customers would pay on the last day of the dscount period Usee 360-day ye) Average recavabies balance

Q: On average, how much “free” trade credit does the firm receive during the year?

A: Free trade credit refers to the payment made by a firm within the discount period whereas when the…

Q: Ricky Ripov's Pawn Shop charges an interest rate of 15 percent per month on loans to its customers.…

A: Effective annual rate = (1 + r)n - 1 r = interest rate per month n = number of months

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

A:

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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 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: What is the nominal annual percentate cost of the non-free trade credit if it pays within 120 days…

A: Nominal annual % cost of non-free trade credit = [ { Discount / ( 1 - Discount ) } x { 365 / ( Days…

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: 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…

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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: Haumea has been offered credit terms of discount of four percent if paid within thirty days, if not…

A: When goods are sold on credit, the seller extends short term finance to the buyer to make the…

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…

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Q: A credit is paid as follows: a down payment corresponding to 30% of the value of the credit, 16…

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Q: ; 80% of Nadak's accounts receivable are paid within the discount period.   Required: a. What is…

A: Given : Annual credit sales  total $337.3 million.  2.25% cash discount for payment within 10 days…

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: 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…

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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: Taylor Company provides the following information: Annual credit sales : $ 24,000,000 Collection…

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

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Q: A firm sells its accounts receivables to a factor at a 1.7% discount. The average collection period…

A: Effective annual interest rate formula: effective annual interest rate =1+rnn-1where,r=discount…

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Q: Axis Wells and Excavation (AWE) currently generates $198,000 in annual credit sales. AWE sells on…

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A: Using excel nper function to calculate the time

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

A: Accounts payable: Accounts payable are the liabilities which arises due to credit purchases from the…

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: Queen Corp sells on terms of 2/10, n/30. 70% of customers normally avail of the discounts. Annual…

A: The calculation of average accounts receivable has been made as follows:

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A: Time = 45 days Terms = 2/8 Pay after A = 58 days Year y = 365 days

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A: Accounts Receivables Accounts receivables are the amounts due from the customers of the company…

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: 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: 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: 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…

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.