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agasfer [191]
3 years ago
6

Cypress Systems Inc., of Florida, agrees to sell specialized hydroponic growing equipment to Landcaster's of Australia. Because

the two companies have never done business with each other, Cypress requires a banker's acceptance as payment for the $1,000,000 order. The banker's acceptance carries a 1.4% commission per annum and payment is to be received in 6 months. If Cypress Inc. chooses to discount or sell the bankers acceptance to its bank, the discount rate is 1.00% per annum.What is the size of the discount (not including the commission fee) Cypress must take for receiving the proceeds of the sale today rather than waiting for six months? A $7,000 B $5,000 C $12,000 D $14.000
Business
1 answer:
exis [7]3 years ago
6 0

Answer:

B) $5,000

Explanation:

Cypress total bill is $1,000,000. Since a foreign bank is going to provide them a service (the acceptance of payment) it will charge them 1.4% per year or 0.7% for thee six month period.

That means that Cypress will collect $1,000,000 x (1 - 0.7%) = $993,000

If Cypress decides to sell the bankers acceptance at a 1% annual fee, he will lose an additional 0.5% for the 6 month period = $930,000 x 0.5% =  $4,965. Apparently we have to round to the nearest thousand ≈ $5,000

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1 year ago
Assess how Wal-Mart is managing ethics and social responsability as one of thé largest corporations in the world
timofeeve [1]

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Wal-Mart has taken revolutionary steps over the years to start econ friendly activities to promote ethics and social responsibility.

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Wal-Mart began to take initiatives to address global impacts and embraced a sustainability program. It concentrated on redoing everything, and the main centre was to be Eco-friendly. There were original and inventive techniques received by the organisation, including building a solar panel to the stores. There was likewise establishment of innovations to use less fuel and electricity.

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3 years ago
True or false Five out of seven members of the Board of Cosmetology must have been licensed cosmetologists for at least five yea
sertanlavr [38]

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5 0
1 year ago
a tv retailer suppose that in order to sell a number of tvs the price per unit must follow the model p=600-0.3n
Karolina [17]
Answer:
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3 0
2 years ago
On July 31, the bookkeeping account Supplies Inventory shows a debit balance of $1,000. A physical inventory taken on that date
Tanya [424]

Answer:

$200

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When Supplies inventory are purchased, a debit is posted to Supplies inventory and a credit to cash account or accounts payable.

As the inventories are used, debit Supplies expense and credit Supplies inventory account.

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This will be done by

Debit Supplies expense  $200

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Being entries to record inventory used in July

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