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o-na [289]
2 years ago
6

The Reynolds Corporation buys from its suppliers on terms of 2/19, net 50. Reynolds has not been utilizing the discounts offered

and has been taking 50 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 10 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. (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
harina [27]2 years ago
4 0

Answer:

23.68%

Explanation:

The computation of the cost of not taking a cash discount is shown below:-

Cost of not taking a cash discount = [Discount percentage ÷ (100% - Disc.%)] × (360 ÷ (Final due date - Discount period))

= (2% ÷ 98%) × (360 ÷ (50 - 19))

= 2.04% × 11.61

= 23.68%

Therefore for computing the cost of not taking a cash discount we simply applied the above formula.

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C. Businesses create goods for product markets to sell.

Explanation:

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When a development team is having trouble delivering a working increment because they don't understand a functional requirement?
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If a developmental team is having trouble delving a working increment because they don't understand a functional requirement, they should work with the product owner so that can get better clarification on how the product works. If the developmental team continues to have problems, it is likely the result of the product that has functional issues. 
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1 year ago
Helena Company reports the following total costs at two levels of production. Classify each cost as variable, fixed, or mixed. 5
zysi [14]

Answer:

Explanation:

Mainly there are three types of cost i.e variable cost, fixed cost, and the mixed cost. The variable cost is that cost which is change when the production level change in the same proportion like as in double units.  whereas the fixed cost is that cost which remains constant whether production level changes or not . The mixed cost is that cost which include some part of variable cost and the fixed cost

So, the variable cost includes indirect material, indirect labor, and factory supplies

The fixed cost includes supervision, taxes ,and depreciation expense.  

The mixed cost includes utilities,maintenance,etc

So, the categorization is shown below:

Indirect labor - Variable cost

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Direct labor - Variable cost

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5 0
2 years ago
You plan to work for Strickland Corporation for 12 years after graduation and after that want to start your own business. You ex
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Answer:

d. $277,797

Explanation:

Savings = $7,500 for the first 6 years (t = 1 through t = 6)

Deposits = $15,000 for the following 6 years (t = 7 through t = 12)  

Gifts = $25,000

Earnings = 9% annually

Calculation of the Final Amount by Savings, Deposits and Gifts:

                                                             Amount at the end of year 6

Interest rate                   9.0%  

1st Annuity (Savings)     $7,500          $56,425 - Compounded at 9%  2nd Anuuity (Deposits)   $15,000                   NA  

Gift                                   $25,000                   NA  

Total Years                        12  

Annuity years                        6

Amount at the end of year 12

           $94,630

           $112,850

           $70,317

Final Amount: $277,797

Therefore, $277,797 is the final amount which you will have when you start your business 12 years from now.

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<h3>?</h3>

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