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slava [35]
3 years ago
8

Ed's Print Shop received an invoice dated May 10 for $2,500 with terms 3/10, 1/15, n/60. On May 22, Ed's Print Shop sent a parti

al payment of $2,000.
What is the actual amount that should be credited?
What is Ed's Print Shop's outstanding balance
Business
1 answer:
artcher [175]3 years ago
3 0

Amount to be credited = $2,020

Outstanding balance = $480

Explanation:

The payment terms state that

  • 3% discount may be taken within 10 days of the invoice date (up to May 20); or  
  • 1% discount may be taken within 15 days of the invoice date (after May 20 but not later than May 25); or
  • The net amount is due within 60 days of the invoice date if advantage is not taken of the cash discounts offered.
  • The  3% cash discount is not applicable as the payment was made on May 22 which is after the end of the discount period. However, the 1% discount is allowed, since payment on May 22 is within the 15-day period for the 1% discount.

Amount to be credited

= 2000 / (1−0.01)

= 2000 / (0.99)

= $2,020

Outstanding balance

= 2500 - 2020

= $480

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Kooky Cookies Corporation purchased the Crazy Cookie Company. Although this was initially an acquisition, the merging of these t
aev [14]

Answer:

The correct option is C

Explanation:

Horizontal merger is the one where the merger of the two companies who are competing in the same industry and offering or providing the same kind of goods. Whereas the Vertical merger is the one where the merger of the two companies involve in producing the same good but at different stages of the production.

So, in this case, merger between Kooky Cookies Corporation and Crazy Cookie Company will be horizontal  merger because both companies offering similar products to same customers. And Kooky Cookies purchases baking product, it will be a vertical merger as it involve in the production of cookies but at different levels.

3 0
3 years ago
Laws Corporation is considering the purchase of a machine costing $16,000. Estimated cash savings from using the new machine are
mario62 [17]

Answer:

We can say the rate is close enought to 14%

Explanation:

tthe IRR will be the rate at wich the NPV is zero

The cash flow are an annuity of 4,120 for 6 years

NPV = present value of cash flow - investment

 0    =  PV of annuity - investment

 0  = PV of annuity - 16,000

PV = 16,000

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C    4120

time  6

rate       IRR

4120 \times \frac{1-(1+IRR)^{-6} }{IRR} = 16,000\\

We divide the PV by the annuity to get the annuity factor

16,000 / 4,120 = 3,88349

We can look into the annuity table for a factor at time = 6 close to this figure

we have

14% factor of 3.889

15% factor of 3.784

We can say the rate is close enought to 14%

8 0
4 years ago
Andrew carnegie was a native of what country? ireland scotland switzerland united states 2. carnegie made his fortune primarily
slavikrds [6]
He was born in the city of Dunfermline which is in the country Scotland. 
7 0
4 years ago
Read 2 more answers
All of the following are assumptions of cost-volume-profit analysis except a.the sales mix is constant. b.costs can be divided i
Vikentia [17]

Answer:

d. within the relevant range of operating activity, the efficiency of operations can change.

Explanation:

Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.

Generally, to use the cost-volume-profit analysis, financial experts usually make some assumptions and these are;

1. Sales price per unit product is kept constant.

2. Variable costs per unit product are kept constant and the total fixed costs of production are kept constant i.e costs can be divided into fixed and variable components.

3. All the units produced are sold i.e there is no change in inventory quantities during the period.

5. The costs accrued are as a result of change in business activities.

6. A company selling more than a product should simply sell in the same mix i.e the sales mix is constant.

<em>Hence, the aforementioned are assumptions of cost-volume-profit analysis except that, within the relevant range of operating activity, the efficiency of operations can change.</em>

6 0
4 years ago
in a perfectly competitive industry the market price is $25. a firm is currently producing 10,000 units of output; average total
Anton [14]

The firm should produce more output to maximize its profit. In a perfectly competitive industry, firms will have marginal revenue equal to price. Therefore, the marginal revenue is $25.

In macroeconomics, an industry is a branch of an economic system that produces a closely-related set of raw materials, items, or offerings. For instance, one would possibly refer to the wooden enterprise or to the insurance industry. While comparing a single institution or agency, its dominant supply of revenue is generally used by industry classifications to categorize it within a particular enterprise. As an example, the global widespread industrial classification (ISIC) – used at once or thru derived classifications for the professional data of most countries internationally – classifies "statistical devices" via the "monetary activity wherein they especially have interaction". Enterprise is then defined as a "set of statistical gadgets which can be classified into the identical ISIC category". however, a single business need not belong just to one enterprise, which includes when a big business (regularly known as a conglomerate) diversifies throughout separate industries.

Learn more about industry here

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In a perfectly competitive industry, the market price is $25. A firm is currently producing 10,000 units of output, its average total cost is $28,its marginal cost is $20, and its average variable cost is $20. Determine whether the following statements are true or false:

4 0
2 years ago
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