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Nastasia [14]
3 years ago
7

The Reynolds Corporation buys from its suppliers on terms of 3/13, net 35. Reynolds has not been utilizing the discounts offered

and has been taking 35 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 12 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.
B) Calculate the effective rate of interest if the company borrows from the bank.
Business
1 answer:
grin007 [14]3 years ago
3 0

Answer:

Explanation:

A)

cost of not taking a cash discount = (1+3/(100-3))^(360/(35-13)) -1

cost of not taking a cash discount = 66.5%

B)

Effective rate of interest if the company borrows from the bank = (17/(100-12))

Effective rate of interest if the company borrows from the bank = 19.3%

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Productivity measurement is complicated by the fact the precise units of measure are often unavailable. When you are managing productivity it can vary based on each task or the person completing the tasks. Because of this, it makes it complicated for management to measure productivity as there could be no units or no comparable units to measure. Productivity is better reflected on the outcome of what they do complete versus what they do not. 
3 0
3 years ago
The general ledger of Sandhill Corporation as of December 31, 2021, includes the following accounts: Copyrights $ 58000 Deposits
Dafna1 [17]

Answer:

$687,000

Explanation:

Intangible Assets are identifiable assets of a non-monetary asset  and without physical substance. Intangible assets include trademarks, copyrights and goodwill that is acquired.

Important to note that Internally generated Goodwill  is not defined as an assets. Thus, deposits with advertising agency of $35,000 are not included within tangible assets

<u>Calculation of Total Intangible Assets will be :</u>

Intangible Assets Calculation = (Copyrights) $ 58,000  + (Goodwill Acquired) $560,000 + (Trademarks) $69,000

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Therefore,

Sandhill's balance sheet as of December 31, 2021 should report total intangible assets of $687,000

5 0
3 years ago
An agreement between Jim and his 18-year-old daughter, Betty, provides that he will give her $25,000 if she does not marry until
Mariulka [41]

Answer:

No, Jim is not correct.

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Betty will win this case.

Generally, the law encourages marriage as its policy. If there is any contract that prevent or restrict marriage in whatever way, such contract would be considered null and void because it is against the public policy.

Despite the above, contracts will be generally considered valid when they place reasonable restrictions on marriage. In this question, the restriction placed on Betty that she should get married until after her 22nd birthday is reasonable and has to be considered to be valid. Based on this, Betty has to be paid the $25,000 as laid down in the binding contract between the two parties.

Therefore, Jim is not correct.

4 0
3 years ago
During 2015 Lopez Corporation reported net sales of $3,200,000 and net income of $1,200,000. Its balance sheet reported average
Sholpan [36]

The asset turnover is 2.4 times.

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Asset turnover is the ratio of total sales or revenue to average assets. This metric helps investors understand how effectively companies are using their assets to generate revenue. Investors use asset turnover to compare similar companies in the same industry or group.

In the retail sector, an asset turnover of 2.5 or higher may be considered good, but in the utility sector, a company is more likely to aim for an asset turnover between his 0.25 and 0.5.

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8 0
2 years ago
You have just taken over your family’s printing business. It is important to you that the business has a positive impact on your
Nimfa-mama [501]

Answer:

a. Some of your printing processes utilize chemicals that require press operators to wear masks during production.<u> </u><u>Health and safety risks.</u>

Those chemicals present a health and safety risk because a person can get sick if they do not wear the masks.

b. Because of increased profits in the last 5 years, you have been able to increase staffing levels by 25%. <u>Increase employment.</u>

<u></u>

c. The business is a member of the local Chamber of Commerce and supports local community charities. <u>Improve the quality of life</u>

The business supports local charities which shows that it aims to improve the quality of life.

<u></u>

d. The business is the only one in town to offer 48-hour turnaround on printing projects. <u>Offer valuable products</u>

The business is the only one offering this service so it is offering valuable services.

<u></u>

e. The business uses ink that is shipped in bulky, non-recyclable ink containers. <u>Environment damage</u>

Ink is bulky and containers are non-recyclable. This will cause environmental damage.

5 0
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