National automotive supply, a major distributor, sells merchandise to Alex Motors. The invoice is $1500, which includes $30 freight cost. The invoice date is July 15 and the terms are 3/10 and n/30. If Alex motors returns $300 worth of merchandise. Compute the cash discount, remittance, discount date and due date?
Q: An example of systematic risk is: changes in the Federal budget deficit that could affect…
A: Systematic risk The type of risk that cannot be eliminated or minimized is known as systemic risk.…
Q: (Related to Checkpoint 16.1) (Dividend irrelevance of the timing of cash dividends) The Caraway Seed…
A: An entity is obligated to pay a portion of its income to its equity holders. This periodic payment…
Q: Scheduled payments of $890 due today, $525 due in 15 months, and $555 due in 33 months are to be…
A: The concept of TVM states that money has an inherent interest-earning capacity, making money earned…
Q: You are considering the following investment activity. The facts are the following:…
A: Net Present Value Net present value is the distinction between the worth of money now and when it…
Q: Which one of the following would most accurately characterize Ben Bernanke's attitude toward the…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Bonds have several unique terms and features. Required: BRIEFLY describe or provide example(s) of…
A: Bonds are reflective of fixed income securities which will offer with regular coupon rate and they…
Q: Study Guide 7. Section 9-1: Ralph is interested in buying a cargo van with a base price of $22,245.…
A: Sticker price includes base price, Options price, and Destination charge. The base price is…
Q: Locust Inc. owes $13,000.00 to be repaid by monthly payments of $470.00. Interest is 11% compounded…
A: Honor Code: Since you have posted a question with multiple sub-parts, we will provide the solution…
Q: Q2. Lamar Company is considering two projects A and B with the same initial i $10,000The following…
A: Payback period is the one of the simple methods to calculate the initial investment and do not…
Q: Fools Gold Mining Company is expected to pay a dividend of $8 in the upcoming year. Dividends are…
A: Solution: Given, Risk free rate = Rf = 6% Expected return on the market portfolio = Rm = 14% Beta…
Q: Fourteen years and three months ago, you took out a 30- year loan of $300,000. The loan has a 7% APR…
A: Mortgage payments are the fixed amount paid by the borrower to the lender that includes the interest…
Q: +60 bps
A: Prices of bond are indirectly related the yield to maturity of bond and so if the yield to maturity…
Q: Is this statement true/ false? Why is it? "As the fixed rate receiver in an interest rate swap…
A: Interest rate swaps are a popular financial instrument which allow two parties to exchange interest…
Q: Jackie and Joanie take out a mortgage. Their annual property taxes are $1688 and their annual…
A: A mortgage is a loan taken to purchase a house and is secured by the property purchased as…
Q: Find the amount necessary to fund the given withdrawals. 2) Quarterly withdrawals of $ 650 for 6…
A: Present value refers to the money present today having more worth than the money will receive in…
Q: what nominal rate of interest compounded quartely is quivilant to a effective rate of 5.99%.
A: We will use formula for effective rate of interest to find nominal rate : re = 1 + imm - 1…
Q: $3401 was invested in a 3-year compound-interest GIC. Its maturity value was $3775.8. What quarterly…
A: Compound interest is the method of calculating interest where the interest of one period is added to…
Q: You are trying to convince an investor into buying a rental apartment unit that fetches a rent of…
A: Present Value of Annuity: The present value of an annuity represents the present value of a future…
Q: What is the advantage of using comparative statements for financial analysis rather than statements…
A: Comparative statements Comparative statements are the financial statements over more than one…
Q: at is the initial value in part a ??
A: In forward and futures the price calculations are done based on the future cash flow from the stock…
Q: Bells Inc. plan to issue new 7.0% coupon, 25-year semi-annual bonds with a standard par value. If…
A: A bond is a debt instrument where a lender provides capital in the form of bond price and receives…
Q: Using this table as needed, calculate the required information for the mortgage. (Round dollars to…
A: Mortgages A mortgage is an agreement between the lender and the borrower in which the lender can…
Q: Gradient Inc. is unlevered, is valued at $2M and has 50,000 shares outstanding. The compa that in…
A: To increase the value of shares company issue the debt and repurchases the shares of the company and…
Q: The standard deviation of monthly changes in the spot price of live cattle is (in cents per pound)…
A: We need to determine the hedging strategy using futures.
Q: An investor is considering the development of a recreational complex with the following relevant…
A: We have the quantum and timing of all the cash flows emanating from a venture. We have to find the…
Q: Suppose the cost and the demand for a daily product is: C=10 d(p) = D(1 - w(p)) = 200-10p What is…
A: We have the demand and the cost function. We need to find the total contribution (profit) based on…
Q: f a firm buys under terms of 3/15, net 50, but actually pays on the 20th day and still takes the…
A: The company generally makes cash sales and also the sales on account. The company offers discounts…
Q: Round dollar amounts to TWO decimal places. John leases a car priced at $24,822 with a contract that…
A: Loans are paid by the periodic payments and these payments are fixed and these carry the payment for…
Q: Assume that the rate on a floater is set at LIBOR + 3%, that the floater portion of a class is 75…
A: LIBOR - 3%
Q: Which of the following is likely to cause the largest Cash Outflow: Sale of a 30 Story Office…
A: Cash Outflow include all those activities that results in decline of cash due to purchase of some…
Q: Convertible preferred stock is normally converted into a. shares of common stock b. warrants c.…
A: Conversion of convertible preferred stock / convertible bonds is usually at option of holder of…
Q: same exercis -lying stock
A: Your payoff is either 0 of S -X Where X is the exercise price, and S is the spot price, it is…
Q: You have savings and you have the following alternatives for investing your money: 1. Apple company…
A: We have three investment options. We need to evaluate them by first finding their current value.
Q: uppose that the current EUR/GBP exchange rate is £0.86 per euro. The current 6-month interest rates…
A: In the international business exchange rate matter the most and the volatility in the exchange rate…
Q: The Milton Company currently purchases an average of $18,000 per day in raw materials on credit…
A: Concept. Credit period is time allowed by the supplier to customer to make payment for the…
Q: Efficient Market Hypothesis
A: In financial economics, the efficient-market hypothesis (EMH) holds that asset prices accurately…
Q: (Stock repurchase and taxes) The Barryman Drilling Company is planning on repurchasing $1.00 million…
A: Current price of the stock S1 = $10.01 Number of shares to be sold = 2100 Purchase price of the…
Q: All financial intermediary institutions in the intermediation market O borrow in small denominations…
A: The primary task of a financial intermediary is to act as a bridge between the different…
Q: Which of the following is NOT one of the Fed's monetary policy tools? A. The required reserve ratio.…
A: Several options have been listed as Fed's monetary policy tools. We have to find the one that's not…
Q: You are trying to convince an investor into buying a rental apartment unit that fetches a rent of…
A: Present value is the equivalent value of money today that is to be received in the future times…
Q: An investor has accumulated 100 daily returns for his £100,000,000 portfolio. After ranking the…
A: We have the daily returns of a portfolio ranked. We need to find 95% VaR.
Q: The clientele argument in dividend theory implies that: ● The stock of low-payout firms will be held…
A: Several statements have been given about the clientele argument. We have to find the correct one.
Q: Ketchup Corporation is currently trading at $35 per share. There are 8 million shares outstanding,…
A: When you invest money in the stock market than it is possible that you may get extra ordinary profit…
Q: The company is considering hedging its copper production. It thinks that prices are highly likely to…
A: An option is a derivative contract that gives holder the right(but not obligation) to buy or sell an…
Q: Find the rate of interest i such that a 20-year annuity with payments at the end of each year has…
A:
Q: 30. portfolio duration is a. the average of the duration of the component bonds in the portfolio…
A: Duration of the bond indicates the sensitivity of bond prices with change in the interest rate in…
Q: that the capital asset pricing model (CAPM) applies. The risk premium of a stock is 3 percent and…
A: Covariance is one of the most used statistical measures used in finance and it shows the…
Q: Yellaratu Group is reorganizing and has presented a proposal based on a going-concernivalue of $3…
A: Reorganization: Reorganization represents an overhaul of a firm's internal structure. Firms go…
Q: You want to invest in an annuity that will pay you $11,400 per year for the first 8 years and $1,000…
A: The compounding rate of interest is always more beneficial to the investor because it offers more…
Q: te = 4% convertib
A: reflect the risk-free rate as a compounding factor and the dividend as discounting factor. No…
National automotive supply, a major distributor, sells merchandise to Alex Motors. The invoice is $1500, which includes $30 freight cost. The invoice date is July 15 and the terms are 3/10 and n/30. If Alex motors returns $300 worth of merchandise. Compute the cash discount, remittance, discount date and due date?
Step by step
Solved in 2 steps with 2 images
- Screpcap Co. had the following transactions during the first week of June: June 1Purchased merchandise on account from Acme Supply, 2,700, plus freight charges of 160. 1Issued Check No. 219 to Denver Wholesalers for merchandise purchased on account, 720, less 1% discount. 1Sold merchandise on account to F. Colby, 246, plus 5% state sales tax plus 2% city sales tax. June 2Received cash on account from N. Dunlop, 315. 2Made cash sale of 413 plus 5% state sales tax plus 2% city sales tax. 2Purchased merchandise on account from Permon Co., 3,200, plus freight charges of 190. 3Sold merchandise on account to F. Ayres, 211, plus 5% state sales tax plus 2% city sales tax. 3Issued Check No. 220 to Ellis Co. for merchandise purchased on account, 847, less 1% discount. 3Received cash on account from F. Graves, 463. 4Issued Check No. 221 to Penguin Warehouse for merchandise purchased on account, 950, less 1% discount. 4Sold merchandise on account to K. Stanga, 318, plus 5% state sales tax plus 2% city sales tax. 4Purchased merchandise on account from Mason Milling, 1,630, plus freight charges of 90. 4Received cash on account from O. Alston, 381. 5Made cash sale of 319 plus 5% state sales tax plus 2% city sales tax. 5Issued Check No. 222 to Acme Supply for merchandise purchased on account, 980, less 1% discount. Required 1. Record the transactions in a general journal. 2. Assuming these are the types of transactions Screpcap Co. experiences on a regular basis, design the following special journals for Screpcap: (a) Sales journal (b) Cash receipts journal (c) Purchases journal (d) Cash payments journalPrepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.American Signs allows customers to pay with their Jones credit card and cash. Jones charges American Signs a 3.5% service fee for each credit sale using its card. Credit sales for the month of June total $328,430, where 40% of those sales were made using the Jones credit card. Based on this information, what will be the total in Credit Card Expense at the end of June?
- Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On December 10, Lands Inc. contracts with a supplier to purchase 450 plants for its merchandise inventory, on credit, for $12.50 each. Credit terms are 4/15, n/30 from the invoice date of December 10. B. On December 28, Lands pays the amount due in cash to the supplier.Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 300 water bottles for their merchandise inventory, on credit, for $10 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier.Nonnas Re-Appliance Store collects 55% of its accounts receivable in the month of sale and 40% in the month after the sale. Given the following sales, how much cash will be collected in February?
- The following transactions were completed by Nelsons Hardware, a retailer, during September. Terms on sales on account are 1/10, n/30, FOB shipping point. Sept. 4Received cash from M. Alex in payment of August 25 invoice of 275, less cash discount. 7Issued Ck. No. 8175, 915.75, to Top Tools, Inc., for invoice. no. 2256, recorded previously for 925, less cash discount of 9.25. 10Sold merchandise in the amount of 175 on a credit card. Sales tax on this sale is 8%. The credit card fee the bank deducted for this transaction is 5. 11Issued Ck. No. 8176, 653.40, to Snap Tools, Inc. for invoice no. 726, recorded previously on account for 660. A trade discount of 15% was applied at the time of purchase, and Snap Tools, Inc.s credit terms are 1/10, n/45. 15Received 95 cash in payment of August 20 invoice from N. Johnson. No cash discount applied. 19Received 1,165 cash in payment of a 1,100 note receivable and interest of 65. 22Voided Ck. No. 8177 due to error. 26Received and paid telephone bill, 62; Ck. No. 8178, payable to Southern Telephone Company. 30Paid wages recorded previously for the month, 3,266, Ck. No. 8179. Required 1. Journalize the transactions for September in the cash receipts journal, the general journal (for the transaction on Sept. 10th), or the cash payments journal as appropriate. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journals. Prove the equality of debit and credit totals.Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of sale, Smith includes the combined amount of both sales and sales tax in the sales account. At the end of May, Smiths sales account for May has a credit balance of 540,000. Prepare the sales tax adjusting journal entry for the end of May.
- The following transactions were completed by Nelsons Boutique, a retailer, during July. Terms of sales on account are 2/10, n/30, FOB shipping point. July 3Received cash from J. Smith in payment of June 29 invoice of 350, less cash discount. 6Issued Ck. No. 1718, 742.50, to Designer, Inc., for invoice. no. 2256, recorded previously for 750, less cash discount of 7.50. July 9Sold merchandise in the amount of 250 on a credit card. Sales tax on this sale is 6%. The credit card fee the bank deducted for this transaction is 5. 10Issued Ck. No. 1719, 764.40, to Smart Style, Inc., for invoice no. 1825, recorded previously on account for 780. A trade discount of 25% was applied at the time of purchase, and Smart Style, Inc.s credit terms are 2/10, n/30. 12Received 180 cash in payment of June 20 invoice from R. Matthews. No cash discount applied. 18Received 1,575 cash in payment of a 1,500 note receivable and interest of 75. 21Voided Ck. No. 1720 due to error. 25Received and paid utility bill, 152; Ck. No. 1721, payable to City Utilities Company. 31Paid wages recorded previously for the month, 2,586, Ck. No. 1722. Required 1. Journalize the transactions for July in the cash receipts journal, the general journal (for the transaction on July 9th), or the cash payments journal as appropriate. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journals. Prove the equality of debit and credit totals.A customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer pays within the discount window, how much will they remit in cash to the retailer? A. $1,250 B. $1,200 C. $50 D. $500Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.