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
Orlov [11]
3 years ago
14

The Reynolds Company buys from its suppliers on terms of 4/10, net 64. Reynolds has not been utilizing the discount offered and

has
been taking 76 days to pay its bills. The suppliers seem to accept this payment pattern, and Reynold's credit rating has not been hurt.
Mr. Duke, Reynolds Company's vice-president, has suggested that the company begin to take the discount offered. Mr. Duke proposes
the company borrow from its bank at a stated rate of 18 percent. The bank requires a 12 percent compensating balance on these
loans. Current account balances would not be available to meet any of this required compensating balance.

Calculate the cost of not taking a cash discount. (Use 365 days in a year. Do not round intermediate calculations. Round the final
answer to 2 decimal places.)
Cost of not taking a cash discount
Business
1 answer:
umka21 [38]3 years ago
3 0

Answer: 23.04%

Explanation:

Based on the information given in the question, the cost of not taking a cash discount will be calculated as:

= D/(1-D) × (360/n)

where D = Discount rate

n = number of days after the discounted period

= D/(1-D) × (360/n)

= 4%/(1 - 4%) × [365/(76-10)]

= 4%/96% × (365/66)

= 0.0416667 × 5.530303

= 0.2304295

= 23.04%

You might be interested in
cash transactions involving the purchase and sale of long-term assets and current investments are classified on the statement of
ivanzaharov [21]

Answer: Investing Activities

Explanation: The investing activities lists all of the purchases and sales of long-term fixed assets, such as equipment, building, land, and the purchase of shares.

Hope this helps.

7 0
2 years ago
If the Canadian dollar is strengthening, then:
Rainbow [258]

Answer:

The correct answer is (D) it has appreciated in terms of other currencies.

Explanation:

Currency appreciation is the increase in the value of a country's currency with respect to one or more foreign reference currencies, which normally occurs in a floating exchange system.

The reasons that can make a currency or currency appreciate are diverse and usually related to a high demand for it. For example, the consideration of a currency as a low risk of depreciation or a very high level of exports of a country (the demand for the currency to pay for exports will increase) are causes that give rise to the appreciation of a currency.

7 0
3 years ago
In preparation for introducing a new doll to the market, a toy company advertises and creates so much demand that little girls a
maxonik [38]

Answer:

Price Skimming

Explanation:

Price skimming is one kind of price-setting strategy where marketers set a relatively higher price when the product launch initially in the market. Generally, the producer sets a higher price rather than it should prevail in the market, and later on, the price goes down due to lower demand. Price skimming strategy only applicable to a new product that is about to launch in the market. It is generally done by fancy advertising of the product.

3 0
3 years ago
Statutes of limitations Group of answer choices define how much money the injured party can sue for under a breach of contract c
AysviL [449]
<h3>limit the time in which an injured party may sue. only apply to the sale of goods. </h3><h3 />

The length of time allowed under a statute of limitations varies depending upon the severity of the offense as well as the jurisdiction it is being disputed.

<h3>What is Statue of Limitations ?</h3>

A statute of limitations is a law that sets the maximum amount of time that parties involved in a dispute have to initiate legal proceedings from the date of an alleged offense, whether civil or criminal.

  • Cases involving severe crimes, like murder, typically have no maximum period.

Learn more about Statue of Limitations here:

brainly.com/question/15082085

#SPJ2

5 0
2 years ago
An organization that regularly provides a standardized set of data on a periodic basis to its subscribers is called a ______.
Helga [31]
B.full service research supplier
4 0
3 years ago
Other questions:
  • The government decided to reduce taxes on fast-food to increase revenue. The government assumes that fast-food products have a.
    11·1 answer
  • Gracey's Department Stores has $200,000 of 6% noncumulative, nonparticipating, preferred stock outstanding. Gracey's also has $6
    14·1 answer
  • A patient who contributes to causing harm is guilty of what kind of negligence ?
    13·1 answer
  • Susan O Rourke hired an attorney to represent her in a court case involving an auto accident. The attorney charged O Rourke a $2
    6·1 answer
  • The one-to-one property of natural logarithms states that if ln x = ln y, then
    10·1 answer
  • Isabella was hit by a car while she was walking on the road and sustained minor injuries. She filed a case against the car drive
    15·1 answer
  • Who ultimately pays for tariffs, consumers or producers?
    6·2 answers
  • On December 15, 2021, Rigsby Sales Co. sold a tract of land that cost $3,800,000 for $5,000,000. Rigsby appropriately uses the i
    10·1 answer
  • What is Walmart's Times Interest Earned Ratio for the year of 2018 (round it to 3 numbers after the decimal point -&gt; 0.581)
    5·1 answer
  • Which of the following is NOT a repayment plan option?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!