Business, 23.10.2019 01:00, ptrlvn01

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

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 17:00, hrijaymadathil

Amarket is said to be equilibrium when quantity demanded is equal to quantity supplied. critically analyse the above statement by giving different types of market

Answers: 2

continue

Business, 21.06.2019 18:00, chrismed2001

Emily bought 200 shares of abc co. stock for $29.00 per share on 60% margin. assume she holds the stock for one year and that her interest costs will be $80 over the holding period. ignoring commissions, what is her percentage return (loss) on invested capital if the stock price went down 10%?

Answers: 2

continue

Business, 22.06.2019 05:00, jason9394

Identify an organization with the low-total-cost value proposition and suggest at least two possible measures within each of the four balanced scorecard perspectives.

Answers: 3

continue

Business, 22.06.2019 06:50, jungcoochie101

On january 1, vermont corporation had 40,000 shares of $10 par value common stock issued and outstanding. all 40,000 shares has been issued in a prior period at $20.00 per share. on february 1, vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on march 1. the journal entry to record the purchase of the treasury shares on february 1 would include a credit to treasury stock for $90,000 debit to treasury stock for $90,000 credit to a gain account for $112,500 debit to a loss account for $112,500

Answers: 3

continue

Do you know the correct answer?

The reynolds corporation buys from its suppliers on terms of 3/15, net 55. reynolds has not been uti...