1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
o-na [289]
3 years ago
6

The Reynolds Corporation buys from its suppliers on terms of 2/19, net 50. Reynolds has not been utilizing the discounts offered

and has been taking 50 days to pay its bills. Ms. Duke, Reynolds Corporation's vice president, has suggested that the company begin to take the discounts offered. Duke proposes that the company borrow from its bank at a stated rate of 17 percent. The bank requires a 10 percent compensating balance on these loans. Current account balances would not be available to meet any of this compensating balance requirement. a. Calculate the cost of not taking a cash discount. (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
harina [27]3 years ago
4 0

Answer:

23.68%

Explanation:

The computation of the cost of not taking a cash discount is shown below:-

Cost of not taking a cash discount = [Discount percentage ÷ (100% - Disc.%)] × (360 ÷ (Final due date - Discount period))

= (2% ÷ 98%) × (360 ÷ (50 - 19))

= 2.04% × 11.61

= 23.68%

Therefore for computing the cost of not taking a cash discount we simply applied the above formula.

You might be interested in
The main purpose of insurance policies that are protected by COBRA is to:
irinina [24]

Insurance policies that are covered by COBRA are done to D. extend insurance coverage if a worker loses their job.

<h3>What is the purpose of COBRA?</h3>

The Consolidated Omnibus Budget Reconciliation Act (COBRA) protects workers in the event that they lose their jobs for certain reasons.

This protection comes in the form of the worker and their families being able to access the health insurance benefits they had while the worker was working. This access will eventually lapse however.

Find out more on COBRA at brainly.com/question/6294682.

7 0
2 years ago
Explain how companies choose employees to consider for promotion.
lakkis [162]

Answer:

Employers will look to see which workers are applying themselves. They want workers who are flexible, have good attitudes, are loyal to their company, practice good judgement, and are unselfish. Workers who go out and do work that is not formally assigned to them and expand the scope of their responsibilities are rewarded with promotions. Workers who maintain extensive professional networks and learn new skills are also prime candidates for promotion.

Answer from the person who asked the question.

4 0
3 years ago
Read 2 more answers
Which of the following is FALSE? Group of answer choices Most of the maquiladora industry is located in the states of Mexico tha
REY [17]

Answer:

The maquiladora industry has not created much employment in Mexico because most of the production is capital intensive

Explanation:

maquiladora industry in Mexico are company that allow industries to perform production by converting raw materials into finished product for exportation and for local use by making this industry a "Tax- free". or making them to have duty free. Examples of maquiladora industry are

Acer Peripherals, Bali Company, Inc.

and Bayer Corp./Medsep. It should be noted that The maquiladora industry has not created much employment in Mexico because most of the production is capital intensive.

7 0
3 years ago
Net income increases when: Group of answer choices fixed costs increase. depreciation increases. the average tax rate increases.
worty [1.4K]

Net income increases when "revenue" increases.

<h3>What is revenue?</h3>

The overall revenue generated by a business over a predetermined period of time. This can be done by-

  • The entire income generated by a specific source, such as a property with high predicted yearly returns.
  • The total income a financial investment generates.
  • The amount of revenue that a political entity, such as a country or state, collects and deposits into the treasury for use by the general public.
  • The simplest way to determine revenue is to multiply the total number of units sold by the selling price.
  • A company's earnings, or bottom line, will be lower than its sales because revenues do not take expenditures or expenses into account.

To know more about the financial investment, here

brainly.com/question/334960

#SPJ4

5 0
2 years ago
Suppose the government in your city imposes a $0.50 excise tax on gasoline. the burden of this tax falls on:_____.
MAXImum [283]

Let's say that gasoline is subject to a $0.50 excise tax in your city. This tax affects both buyers and sellers equally.

Depending on the elasticity of demand and supply, a tax's burden is split between purchasers and sellers. Depending on their alternatives, buyers' and sellers' desire to exit the market is represented by elasticity. The relationship between supply and demand price elasticity and tax incidence is also possible. The tax burden is placed on the purchasers when supply is more elastic than demand. The cost of the tax will be borne by the producers if demand is more elastic than supply.

Learn more about the burden of this tax here.

brainly.com/question/28202762

#SPJ4

4 0
2 years ago
Other questions:
  • On june 8, smith technologies issued a $75,000, 6%, 140-day note payable to johnson company. what is the due date of the note?
    8·2 answers
  • A poultry farmer is debating whether to acquire Rhode Island Reds or Buff Orpingtons to lay the eggs he wants to sell. The fixed
    11·1 answer
  • Please explain what is the difference between a change in demand versus a change in quantity demanded? Why is it so important to
    6·1 answer
  • True or False
    10·1 answer
  • You purchased shares of Broussard Company using 50 percent margin; you invested a total of $20,000 (buying 1,000 shares at a pri
    9·1 answer
  • In the obsolescing bargain situation, bargaining power of the host country government will be stronger when the MNC has made lar
    5·1 answer
  • A withholding allowance is a _____.
    11·1 answer
  • Wasson Company reported the following year-end information: Beginning work in process inventory $ 35,000 Beginning raw materials
    6·1 answer
  • To encourage employee ownership of the company's common shares, KL Corp. permits any of its employees to buy shares directly fro
    9·1 answer
  • If fixed costs are $200,000 and the unit contribution margin is $20, what amount of units must be sold in order to have a zero p
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!