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
Reptile [31]
3 years ago
5

Fairweather Corporation purchases merchandise on terms of 2/15, net 40, and its gross purchases (i.e., purchases before taking o

ff the discount) are $800,000 per year. What is the maximum dollar amount of costly trade credit the firm could get, assuming it abides by the supplier's credit terms
Business
1 answer:
Kobotan [32]3 years ago
9 0

Answer:

The answer is $53,699

Explanation:

Discount = 2%

Discount days = 15 days

Net days = 40 days

Gross purchase is $800,000 per year

Discount on the purchase is $16,000(2% of $800,000)

Therefore net purchase is $784,000($800,000 - $16,000).

Net per day is:

Net purchase ÷ 365 days

$784,000 ÷ 365 days

= $2,147.95

Total trade credit = Net per day x Net days

$2,147.95 x 40 days = $85,918

Free credit = Net per day ×Discount days

=$2,147.95 x 15= $32,219

Therefore, Costly trade credit = Total credit −Free credit

$85,918 - $32,219

= $53,699

You might be interested in
A good way to show your boss that you are dependable is to _____. a. arrive early b. arrive with snacks c. arrive late d. arrive
myrzilka [38]
A. Arrive early.

Explanation:

Dependable: Trustworthy and reliable.

B. Arriving with snacks doesn’t get you anywhere.

C. Arriving late isn’t even up for debate.

D. A day off is a day off for a reason, go home pal.
3 0
3 years ago
Read 2 more answers
A local bank sponsors a charity run that raises funds for a non-profit building wells and schools in Mali, Africa. How would the
const2013 [10]

Answer:

The use of the bank's funds for this fundraiser would be justified when the bank's goal is to maximize profit by:

giving the bank public relations boost, thereby improving its public image.

Explanation:

The creation of publicity opportunities through this fundraiser enhances the bank's activities.  Awareness of its services is created through the sponsorship.  People perceive the bank as a charity-supporting organization, which cares for the welfare of the less-privileged.  The fundraiser creates huge goodwill.  Public relation is, therefore, critical in helping the bank to engage its diverse publics across various platforms, including the accruing intangible benefits that derivable from the seemingly unprofitable effort.

5 0
3 years ago
Which is not one of the five basic elements of aâ paragraph?
Oduvanchick [21]
The Five Basic Elements of a Paragraph:

1. Unity

2. Development 

3. Audience 

4. Organization

5. Topic Sentence

Answer: A. Spelling

hope this helps!

3 0
3 years ago
Barton Industries has operating income for the year of $3,700,000 and a 25% tax rate. Its total invested capital is $18,000,000
rusak2 [61]

Answer:

1,875,000 Economic Value Added

Explanation:

Net Operating Profit After Taxes  - Invested Capital x Weighted Average Cost of Capital = Economic Value added

This represent the return on the shareholders after their investment return is paid. It is the value generated from the investent resources.

3,700,000 x ( 1- 0.25 ) = 2,775,000 Operating Income after taxes

18,000,000 x 5% =         (900,000)  Required Return

                                        1,875,000 Economic Value Added

4 0
3 years ago
The employees of Pi's Pizza, a local pizza restaurant, feel that the owners and managers really try to follow the ethical polici
weeeeeb [17]

Answer: (C) Ethical climate

Explanation:

 The ethical climate is one of the organizational based atmosphere where the company basically focuses on the employees ethical values, laws and the environment that helps in making different types of complex decisions.

The main purpose of the ethical climate in an organization is that it helps in maintaining the values, principle and the moral of the company employees.

According to the given question, the Pi's pizza is one of the restaurant that maintain the ethical climate by follow the various types of ethical policies. Therefore, Option (C) is correct answer.  

7 0
3 years ago
Other questions:
  • Marsh, inc. paid for freight costs on merchandise it shipped to a customer. in what account will marsh record this cost in a per
    5·1 answer
  • A production function for which proportional changes in all inputs leads to a more-than-proportional change in output is said to
    13·1 answer
  • The maximum distance people are willing to travel for a service is
    5·1 answer
  • Problem 9-20 Two investment advisers are comparing performance. One averaged a 16% rate of return and the other a 15% rate of re
    14·1 answer
  • Give brief definitions of the following concepts: Game theory, cooperative equilibrium, noncooperative equilibrium, dominant str
    11·2 answers
  • The three areas in which Americans spent most of their money are
    7·1 answer
  • In one hour. Sue can produce 70 caps or 21 jackets and Tessa can produce 50 caps or 25 jackets. Sue's opportunity cost of produc
    10·1 answer
  • On November 1, Mason Corp. issued $800,000 of its 10-year, 8% term bonds dated October 1. The bonds were sold to yield 10%, with
    12·1 answer
  • One of the four conditions for perfect competition is few sellers and buyers. <br><br> True or False
    7·1 answer
  • Hormel offers its food distributors a discount of 15 percent for payment within 10 days on orders of all Jiffy brand products. H
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!