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3 years ago

Assessment of a potential supplier’s financial situation:

Business

1 answer:

beks73 [17]3 years ago

4 0

Answer and Explanation:

2.may yield substantial opportunities for negotiating favorable terms for both buying and selling organizations

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This information relates to Sherper Co. 1. On April 5 purchased merchandise from Newport Company for $22,000, terms 2/10, n/10.

Feliz [49]

Answer:

April 5, purchased merchandise on account terms 2/10, n/10

Dr Merchandise inventory 22,000

Cr Accounts payable 22,000

April 6, paid freight costs

Dr Merchandise inventory 900

Cr Cash 900

April 7, purchase equipment on account

Dr P, P & E - Equipment 26,000

Cr Accounts receivable 26,000

April 8, returned some merchandise (April 5th purchase)

Dr Accounts payable 2,000

Cr Merchandise inventory 2,000

April 15, paid merchandise invoice

Dr Accounts payable 20,000

Cr Cash 19,600

Cr Purchase discounts 400

May 4, paid merchandise invoice

Dr Accounts payable 20,000

Cr Cash 20,000

If the company pays the invoice on April 15th, it will get a 2% discount which must be recorded as a purchase discount.

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3 years ago

E-Eyes has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first di

Aloiza [94]

The value of current stock price is equal to $57.93

<u>Explanation:</u>

Given dividend = $20 per year

The calculation of current stock price is as follows:

The Stock price at the beginning of 20th year is equal to = $20 divided by 8 percent = 250

Current stock price ( present value ) = $\mathrm{FV} /(1+\mathrm{r})^{\wedge} \mathrm{n}$

$=\$ 250 /(1+0.08) \wedge 19$

After calculating, we get, 57.92801

Therefore, the value of current stock price is equal to $57.93 (rounded off to 2 decimal places).

7 0

3 years ago

How do you account for financial losses in order to maintain quality customer service, for example, a restaurant that gives a fr

IgorC [24]

Answer: These costs will be classified as sales discounts

Explanation: Sales discounts are discounts given to customers for buying a company's products or special offer given to customers that are regular and loyal to a company's brand. Discounts are also given to attract new customers to a company's product.

Discounts are accounted for under the operational expenses head and are recorded as part of the company's operational expenses.

The effect of discounts are that it reduces the company's net profit but the positive effect is that it can increase the total sales of the company.

4 0

3 years ago

You are contemplating adding direct selling activities to your existing bricks-and-mortar retail business to increase sales. You

Ksivusya [100]

Answer:

It may be more expensive and time-consuming than using an intermediary

Explanation:

Direct selling makes it hard to reach new customers and also entails spending an extensive time in trying to convince prospective customers before sales is made. Sadly, in some situations, some prospects do not buy in on the intended product and thus, no sale is made and time wasted.

8 0

3 years ago

Read 2 more answers

Daniel has decided to open his own bakery using locally sourced ingredients and supplies. He provides income and jobs to local s

Svetllana [295]

Answer:

This is an example of Invisible Hand.

Explanation:

The invisible hand concept describes the individual effort in providing benefit to overall society by his untiring efforts. The market force that helps the demand and supply of goods in a free market to reach equilibrium automatically and providing benefits to its own people.

6 0

3 years ago