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olga2289 [7]
3 years ago
14

A buyer failed to take advantage of the vendor's credit terms of 2/10, n/45, but instead paid the invoice in full at the end of

45 days. By not taking advantage of the cash discount, the equivalent annual interest lost on the amount of the purchase is:
Business
1 answer:
Neko [114]3 years ago
5 0

Answer: 20.86%

Explanation: From the question, the credit term is 2/10, n/45. Which means that the customer gets a 2% discount if payment is made within 10 days. But the customer did not make use of this offer. The equivalent annual Interest lost on the amount of purchases is :

365/ (45-10) * 0.02 = 365/35*2%

= 0.20857 *100= 20.86%

This is calculated using 365 days in a year.

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Cashen Co. paid $2,400,000 to acquire all of the common stock of Janex Corp. on January 1, 2017. Janex's reported earnings for 2
andrew-mc [135]

Answer:

(D) $3,588,000.

Explanation:

Consolidated net income is defined as the sum of net income of the parent company (minus income from investment in subsidiary and unrealized income from downstream sales) plus net income of subsidiaries, which results after deducting depreciation (or amortization), income from transactions with the parent company and unrealized gains in inventories.

In the example, the parent company is Cashen Co. and the subsidiary is Janex´s. Recall that a parent company is one that owns more than 50 percent of the shares of the subsidiary, in this case, it is 100%.

According to the information provided, Cashen Co's net income was $ 3,180,000 and neither income from investment in subsidiary nor unrealized income from downstream sales is reported, so it is not necessary to subtract anything.

On the other hand, we know that Janex´s reported earnings totaled $432,000. However, the amortization of allocations related to the investments ($ 24,000) must be subtracted here. Therefore, the net income of that company was $408,000 ($432.000 - $24.000).

Finally, we add the net income of both companies. That is, $ 3,180,000 + $ 408,000 = $ 3,588,000.

<em>Note: I want to point out that there is a typo in the question. It says: "What is the amount of consolidated net income for the year 2010?", instead of "What is the amount of consolidated net income for the year 2017?"</em>

8 0
3 years ago
If each unit of output can be sold at a price of $5 and incurs variable costs which are constant at $3 per unit, and if the fixe
Vesnalui [34]

Answer:

Break-even point= 15,000/ (5 - 3)= 7,500 units

Explanation:

Giving the following information:

Each unit of output can be sold for $5, variable costs are constant at $3 per unit, and if the fixed costs are $15,000.

We need to use the following formula:

Break-even point= fixed costs/ contribution margin

Break-even point= 15,000/ (5 - 3)= 7,500 units

7 0
3 years ago
Read 2 more answers
You enter into a forward contract to buy a 10-year, zero coupon bond that will be issued in one year. The face value of the bond
weqwewe [10]

Answer:

$498.94

Explanation:

1 year interest rate = 5%

11 year interest rate = 7%

10 year spot interest rate at end of 1 year = [{(1+0.07)^11 / (1+0.05)}^(0.1) - 1]

10 year spot interest rate at end of 1 year = [(2.104852/1.05)^0.1] - 1

10 year spot interest rate at end of 1 year = 1.07202083615 - 1

10 year spot interest rate at end of 1 year = 0.072021

10 year spot interest rate at end of 1 year = 7.202%

Face value = $1,000

Forward Price of contract = $1000/(1+0.0720)^10

Forward Price of contract = $1000/2.00423136

Forward Price of contract = 498.944392915

Forward Price of contract = $498.94

5 0
3 years ago
January​ 1, Biden,​ Inc.'s WorkminusinminusProcess Inventory account had a balance of $ 30 comma 800. During the​ year, $ 58 com
Natasha_Volkova [10]

Answer:

Option (A) is correct.

Explanation:

Given that,

Direct materials = $58,500

Direct labor = $66,000

Manufacturing overhead = 120% of direct labor cost

Opening WIP = $30,800

Cost of goods manufactured:

= Direct materials + Direct labor + Manufacturing overhead

= $58,500 + $66,000 + 120% of direct labor cost

= $58,500 + $66,000 + (120% × $66,000)

= $58,500 + $66,000 + $79,200

= $203,700

December 31 balance of Work-in-Process ​Inventory:

= Opening WIP + cost of goods manufactured - cost of goods completed

= $30,800 + $203,700 - $220,700

= $13,800

6 0
3 years ago
An insurance company assesses all employees' current job skills and creates road maps for them outlining the competencies they n
Zepler [3.9K]

Answer:

Succession management

Explanation:

Succession management can be described as a process of identifying and training new individuals that will take on the role of new leaders. This is done inorder to replace the old leaders in the organisation when they eventually leave the company or retire.

Succession management is very essential because it helps to identify individuals that possess the right skills, experience and capabilities that is needed to move the organization to a higher level.

Succession management is very vital to ensure the continued success of the organization.

6 0
3 years ago
Read 2 more answers
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