On february 5, 2018, nicanor merchandising has purchased goods on account amounting to 500,000 with credit terms of 3/15, n/60 from its major trade supplier. nicanor operates 360 days a year. Required: 3. assuming nicanor did not pay the account within the discount period, how much is the penalty in using the money for the next 45 days? (please answer) 4. in case the prevailing interest rate on bank loan is 20% per annum at simple interest, should nicanor pay within the discount period or not? Breifly discuss your answer and present supporting computation. (please answer) 5. determine the net monetary benefit that nicanor will enjoy in selecting the optimal alternative. (please anwer)
On february 5, 2018, nicanor merchandising has purchased goods on account amounting to 500,000 with credit terms of 3/15, n/60 from its major trade supplier. nicanor operates 360 days a year. Required: 3. assuming nicanor did not pay the account within the discount period, how much is the penalty in using the money for the next 45 days? (please answer) 4. in case the prevailing interest rate on bank loan is 20% per annum at simple interest, should nicanor pay within the discount period or not? Breifly discuss your answer and present supporting computation. (please answer) 5. determine the net monetary benefit that nicanor will enjoy in selecting the optimal alternative. (please anwer)
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 7EA: Homeland Plus specializes in home goods and accessories. In order for the company to expand its...
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On february 5, 2018, nicanor merchandising has purchased goods on account amounting to 500,000 with credit terms of 3/15, n/60 from its major trade supplier. nicanor operates 360 days a year.
Required:
3. assuming nicanor did not pay the account within the discount period, how much is the penalty in using the money for the next 45 days? (please answer)
4. in case the prevailing interest rate on bank loan is 20% per annum at simple interest, should nicanor pay within the discount period or not? Breifly discuss your answer and present supporting computation. (please answer)
5. determine the net monetary benefit that nicanor will enjoy in selecting the optimal alternative. (please anwer)
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