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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.

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Question I - Debbie Debtor borrowed $1,000.00 from First Big Bank. Debbie Debtor agreed to repay the $1,000.00 over eight months
Cloud [144]

Answer:

First Big Bank can file a lawsuit.

Explanation:

Debbie took the loan when he has the job and agreed to refund the loan or borrowed money. Unfortunate circumstances lead to the loss of his job resulting in the stoppage of loan repayment. Since Debbie did not make any crime so it will not come under criminal law but the bank can file a lawsuit against Debbie and he will be liable to pay a fine and penalties.

3 0
3 years ago
Which is not a determinant of demand?
barxatty [35]

B is the correct answer

Hope this helps

6 0
3 years ago
Read 2 more answers
On November 1, 20X1, Starbucks paid the rent of $90,000 for 40 of its stores in Colorado and Nebraska. The rent covers the perio
vazorg [7]

Answer:

Part (1) November 1

The amount paid is the rental advances and must be recorded as advances which falls under the current asset category:

Dr Rental Advances $90,000

Cr        Bank account             $90,000

Part (2) December 31

On this date, some of the rental advances paid would be realized as expenses from the period November 1, 20X1 to December 31, 20X2.

This time duration constitutes to 2 months and the rental advance made on November were for five months. Out of these 5 months, 2 months share must be recognized as expense which is

The relevant entry would be:

Dr Rental Expenses $36,000

Cr                Rental Advances $36,000

8 0
2 years ago
A customer places an order to buy 1,000 shares of a stock at $40. The registered representative enters the order. After executio
tatiyna

Answer: C. II and III

Explanation:

The customer ordered for 1,000 shares of a stock at $40 and so this is what the registered representative should give the customer. As such, if in the first place the order was possible to be done, then it will have to be done now and the registered representative's firm are obligated to provide the amount in question.

Any costs associated with filling the remaining 900 share order is the responsibility of the firm and not of the customer as they made the error not the customer.

3 0
3 years ago
If a group of competitors got together and pulled all their ads from a certain advertising vendor in an attempt to force the ven
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If a group of competitors got together and pulled all their ads from a certain advertising vendor in an attempt to force the vendor to lower his rates that would be considered an offense under boycotting.

  • Practices like setting pricing, manipulating contract bids, and dividing up customers among companies that ought to be competing for them are all considered violations of the Sherman Antitrust Act.
  • These infractions are crimes. As a result, they risk receiving severe penalties or lengthy prison terms.
  • Price fixing is an antitrust offense per se.
  • Usually, but not always, real estate brokers charge for their services as a percentage of the sales price, or "commission."
  • In addition, they often give a publicly disclosed portion of that commission to a broker who brings in a customer.

What is an antitrust violation central element?

The main components of an antitrust violation are a contract, a conspiracy between or among competitors to unreasonably impede commerce, or a combination of these, even though antitrust can and does take several forms in real estate.

Learn more about an antitrust violation central element brainly.com/question/576726

#SPJ4

8 0
1 year ago
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