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Orlov [11]
2 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]2 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%

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Which of these should you consider while communicating in a diverse workplace?
Ivahew [28]

Answer:

A. Culture

Explanation:

Culture is very important and is reflective of how people communicate and etc. For example, the big business setting in China differs from America, so you would want to know how to be respectful of their culture. In China, when giving and receiving business cards, you have to accept it with two hands, not one hand. Failure to do so will cause you to look rude!

I hope this helps clear things up!

6 0
3 years ago
Which of the following businesses poses the highest degree of difficulty in e-commerce? Portals and infomediaries Businesses suc
koban [17]

Answer:

Businesses that rely on a physical infrastructure.

Explanation:

e-commerce is a short for electronic commerce and it can be defined as a marketing strategy that deals with meeting the needs of consumers, by selling products or services to the consumers over the internet.

This ultimately implies that, e-commerce is strictly based on the buying and selling of goods or services electronically, over the internet or through a digital platform. Also, the payment for such goods or services are typically done over the internet such as online payment services.

In view of the above details, businesses that rely on a physical infrastructure poses the highest degree of difficulty in e-commerce because it's only dependent online retailing.

3 0
3 years ago
Titan Company is being sued for $200,000 and the attorney advises Titan that they will probably lose the lawsuit and is estimate
Harrizon [31]

<u>Answer: </u>a credit to a liability

<u>Explanation:</u>

Credit to liability is recorded when a firm knows that it will loose in its case and it has to pay compensation for the law suit. The payment for the law suit is a liability to the firm.

Titan company's attorney has mentioned that the company would probably lose in the law suit and would have to pay an amount of $200,000. This amount will recorded as the credit to liability in the books of Titan Company.

5 0
3 years ago
Select the correct answer from each drop-down menu.
guajiro [1.7K]

Answer: 1

Explanation:

6 0
3 years ago
Oaktree Company purchased new equipment and made the following expenditures:
const2013 [10]

Answer:

                                  Cr.          Dr.

Equipment            $66,880

Account Payable                  $62,600

Cash                                      $4,280

Explanation:

All the costs incurred to make asset usable should be capitalised.

Equipment Cost = Purchase Price + Sales Tax + Freight Charges + Insurance Charges + Installation

Equipment Cost = $59,000 + $3,600 + $840 + $1,040 + $2,400

Equipment Cost = $66,880

4 0
3 years ago
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