Solution-What is the retailer''s effective cost of trade

What is the retailer''s effective cost of trade credit

Reference no: EM131103486

A large retailer obtains merchandise under the credit terms of 1/15, net 45, but routinely takes 60 days to pay its bills. Given that the retailer is an important customer, suppliers allow the firm to stretch its credit terms. What is the retailer's effective cost of trade credit?

Reference no: EM131103486

Questions Cloud

What should the minimum pipe inside diameter be : Air is flowing through an intake line to a compressor. If the inside diameter of the line is 2.5 inches and the air is moving at a velocity of 40 feet per second, what is the volumetric flow in cubic feet per minute (CFM)?

What do you think is the meaning of kathy : What do you think is the meaning of Kathy's statement that the FASB needs a starting point toresolve accounting controversies?

Consequences of non-compliance : Describe three employment laws and the consequences of non-compliance. Assess how an organization might structure their policies, practices or culture to ensure compliance.

Determine the output resistance of the circuit : Determine the output resistance of the circuit in Fig. 7.19(a) and compare the result with that in the above example. Assume M1 and M2 are in saturation.

What is the retailer''s effective cost of trade credit : A large retailer obtains merchandise under the credit terms of 1/15, net 45, but routinely takes 60 days to pay its bills. Given that the retailer is an important customer, suppliers allow the firm to stretch its credit terms. What is the retailer's ..

Possible response templates : Thank you for your post About Medicaid and Alabama. According to the United States Medicaid website Alabama has adopted CMS guidelines for enrollment in Medicaid (Medicaid, 2016). In 2014, Alabama reported 17 out of 18, and 9 out of 10 healthcare..

List three types of vibration sensors : What is an open collector input why is it used on some sensors. List three types of vibration sensors and discuss how they operate. What effect will temperature change have on a strain gauge mounted to steel and describe the multiple ways this can b..

What is the nominal and effective cost of trade credit : What is the nominal and effective cost of trade credit under the credit terms of 3/15, net 30?

What do we refer the continuous movement of water : What do we refer the continuous movement of water from the ocean to the atmosphere to the land and back to the ocean

User Account

All Pages

What is the retailer''s effective cost of trade credit

Reference no: EM131103486

Reference no: EM131103486

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT