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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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The first three steps to allocating manufacturing overhead are taken before the year begins and include all of the following exc
maks197457 [2]

Answer: D. Allocating some manufacturing overhead to each individual job

Explanation:

The first three steps to allocating manufacturing overhead are taken before the year begins does not involve allocating some manufacturing overhead to each individual job as this would affect the manufacturing process.

5 0
3 years ago
You are an accounting student at a university and also a talented guitar player. During summer vacation, you are hired full time
Travka [436]

Considering the scenario described above, at the store, I am an employee. This is because I'm hired full-time.

Also, because an office manager is supervising me, that shows I am an employee.

Also, given that I work within normal business hours at the store, that is a characteristic of an employee. Again, payment of wages is associated with employee relations.

On the other hand, I work as an independent contractor at the pub because I decide the music to play and get paid per gig.

Also, given that I don't work at normal hours and get paid at a lump sum, this is an independent contractor working feature.

Hence, in this case, it is concluded that I worked as an independent contractor at the pub and an employee at the store.

Learn more here: brainly.com/question/20834227

8 0
2 years ago
2. Prepare a direct materials purchases budget for chemicals for the months of January and February. Do not include a multiplica
Tpy6a [65]

Answer:

Purchases Budget for January   238,590   units  

Purchases Budget for February   233,131 units

Dollar Purchases Budget for January    $ 477,180

Dollar Purchases Budget for February    $ 466,264

Explanation:

<u><em> Patrick Inc.</em></u>

<u><em>Direct Materials Purchases Budget - </em></u>

                                            January           February

Production in units             43,800              41,000

<u>Gallons per unit                  5.5                         5.5 </u>

<u>Gallons for production    240,900             225,500 </u>

Desired ending inventory 33,825                 41,456

<u>Needed                            274,725              266,956 </u>

Less: Beginning inventory 36,135                 33,825

Purchases                         238,590               233,131

Price per gallon                   $ 2.00                  $ 2.00

<u>Dollar purchases               $ 477,180            $ 466,264</u>

<u></u>

Direct Materials Purchases budget is calculated by calculating the gallons per unit which is added to desired ending inventory and beginning inventory is deducted. The purchases units are multiplied with price per unit.

4 0
3 years ago
Managers shift gears quickly and therefore, the average time spent on any one activity is less than _____. a. an hour b. a half
vivado [14]

Answer:

e.nine minutes.

Explanation:

A manager in an organization has a lot of responsibilities.There are a lot of employees working under the manager.So a manager is a very busy person.So they have to take care of a lot of things.

Hence Managers shifts gears very quickly so the average time spent on one activity is around nine minutes.

8 0
3 years ago
Mama Donna’s Bakery produces cupcakes in a variety of unique flavors. The company’s cupcakes are offered for sale in many local
Aleksandr-060686 [28]

Answer:

Batch Level

Explanation:

Batch level activity is the cost incurred that is related to the production of a certain batch of a product. It is usually associated with the cost incurred in the production of a group of units which cannot be traceable to individual units within a batch.

For instance, the incurred cost for setting up a machine to produce a batch of 10,000 units of an item is referred to as batch level cost. The cost can only be allocated to the 10,000 units produced per batch, not just one unit in the batch. In addition to machine setups, other cost drivers are inspection, purchase orders, direct labor hour, quality tests etc.

5 0
3 years ago
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