The reynolds corporation buys from its suppliers on terms of 3/15, net 55. reynolds has not been utilizing the discounts offered and has been taking 55 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 16 percent. the bank requires a 14 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.) b. what is the effective rate of interest on the bank loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) c. do you agree with duke's proposal? yes no

For each of the following cases determine the ending balance in the inventory account. (hint: first, determine the total cost of inventory available for sale. next, subtract the cost of the inventory sold to arrive at the ending balance.)a. jill’s dress shop had a beginning balance in its inventory account of $40,000. during the accounting period jill’s purchased $75,000 of inventory, returned $5,000 of inventory, and obtained $750 of purchases discounts. jill’s incurred $1,000 of transportation-in cost and $600 of transportation-out cost. salaries of sales personnel amounted to $31,000. administrative expenses amounted to $35,600. cost of goods sold amounted to $82,300.b. ken’s bait shop had a beginning balance in its inventory account of $8,000. during the accounting period ken’s purchased $36,900 of inventory, obtained $1,200 of purchases allowances, and received $360 of purchases discounts. sales discounts amounted to $640. ken’s incurred $900 of transportation-in cost and $260 of transportation-out cost. selling and administrative cost amounted to $12,300. cost of goods sold amounted to $33,900.a& b. cost of goods avaliable for sale? ending inventory?