Supplier offers terms-what is the discount being offered
Course:- Financial Management
Reference No.:- EM13943015

Assignment Help
Assignment Help >> Financial Management

You place an order for 2,100 units of Good X at a unit price of $58. The supplier offers terms of 1/30, net 35.

Requirement 1. How long do you have to pay before the account is overdue? (b) If you take the full period, how much should you remit?

Requirement 2: (a) What is the discount being offered? (b) How quickly must you pay to get the discount? c) If you do take the discount, how much should you remit?

Requirement 3: (a) If you don’t take the discount, how much interest are you paying implicitly? Implicit interest $ (b) How many days’ credit are you receiving?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
A stock has an annual return of 13 percent and a standard deviation of 60 percent. What is the smallest expected gain over the next year with a probability of 1 percent?
What stakeholders benefit from reviewing profitability ratios for a company? Identify at least three stakeholder groups, and give an example of how each might use profitabilit
Consider the following projects, X and Y where the firm can only choose one. Project X costs $600 and has cash flows of $400 in each of the next 2 years. Project Y also costs
The current stock price for a company is $35 per share, and there are 2 million shares outstanding. This firm also has 90,000 bonds outstanding, which pay interest semiannuall
The U.S. government owns more than 8000 tons of gold, stored mainly at Fort Knox in Kentucky. - Why did the government accumulate this gold? Should it continue to hold the gol
A company enters into a long futures contract to buy 200 ounces of gold for $1,257 per ounce. The initial margin is $4,000 and the maintenance margin is $1,000. What gold futu
You purchased 100 shares of ABC stock for $20 per share. One year later you received cash dividends of $1 per share and sold the stock for $22 per share. Your holding-period r
A 13-year bond pays 9 interests on a $1000 face value annually. If it currently sells for $1,300, what is its approximate yield to maturity? What is the approximate yield to m