Question
In: Finance
Problem 16-09 Cost of Trade Credit Grunewald Industries sells on terms of 3/10, net 30. Gross...
Problem 16-09
Cost of Trade Credit
Grunewald Industries sells on terms of 3/10, net 30. Gross sales last year were $4,247,000 and accounts receivable averaged $457,500. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewald's nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.) Do not round intermediate calculations. Round your answers to two decimal places.
| Nominal cost | % |
| Effective cost | % |
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Cost of Trade Credit Grunewald Industries sells on terms of 3/10, net 30. Gross sales last...
Cost of Trade Credit
Grunewald Industries sells on terms of 3/10, net 30. Gross sales
last year were $4,964,000 and accounts receivable averaged
$476,000. Half of Grunewald's customers paid on the 10th day and
took discounts. What are the nominal and effective costs of trade
credit to Grunewald's nondiscount customers? (Hint:
Calculate daily sales based on a 365-day year, calculate the
average receivables for discount customers, and then find the DSO
for the nondiscount customers.) Do not round intermediate
calculations....
Edit question Grunewald Industries sells on terms of 3/10, net 30. Gross sales last year were...
Edit question
Grunewald Industries sells on terms of 3/10, net 30. Gross sales
last year were $4,672,000 and accounts receivable averaged
$320,000. Half of Grunewald's customers paid on the 10th day and
took discounts. What are the nominal and effective costs of trade
credit to Grunewald's nondiscount customers? (Hint:
Calculate daily sales based on a 365-day year, calculate the
average receivables for discount customers, and then find the DSO
for the nondiscount customers.) Do not round intermediate
calculations. Round your...
Grunewald Industries sells on terms of 1/10, net 30. Gross sales last year were $4,342,000 and...
Grunewald Industries sells on terms of 1/10, net 30. Gross sales
last year were $4,342,000 and accounts receivable averaged
$475,000. Half of Grunewald's customers paid on the 10th day and
took discounts. What are the nominal and effective costs of trade
credit to Grunewald's nondiscount customers? (Hint: Calculate daily
sales based on a 365-day year, calculate the average receivables
for discount customers, and then find the DSO for the nondiscount
customers.) Do not round intermediate calculations. Round your
answers to...
Grunewald Industries sells on terms of 3/10, net 60. Gross sales last year were $4,916,500 and...
Grunewald Industries sells on terms of 3/10, net 60. Gross sales
last year were $4,916,500 and accounts receivable averaged
$480,500. Half of Grunewald's customers paid on the 10th day and
took discounts. What are the nominal and effective costs of trade
credit to Grunewald's nondiscount customers? (Hint: Calculate daily
sales based on a 365-day year, calculate the average receivables
for discount customers, and then find the DSO for the nondiscount
customers.) Do not round intermediate calculations. Round your
answers to...
Problem 16-06 Receivables Investment Snider Industries sells on terms of 3/10, net 25. Total sales for...
Problem 16-06
Receivables Investment
Snider Industries sells on terms of 3/10, net 25. Total sales
for the year are $1,160,000. Thirty percent of customers pay on the
10th day and take discounts; the other 70% pay, on average, 30 days
after their purchases. Assume 365 days in year for your
calculations.
What is the days sales outstanding? Round your answer to one
decimal place.
days
What is the average amount of receivables? Round your answer to
the nearest dollar. Do...
Problem 16-06 Receivables Investment Snider Industries sells on terms of 3/10, net 25. Total sales for...
Problem 16-06 Receivables Investment Snider Industries sells on
terms of 3/10, net 25. Total sales for the year are $530,000.
Thirty percent of customers pay on the 10th day and take discounts;
the other 70% pay, on average, 30 days after their purchases.
Assume 365 days in year for your calculations. What is the days
sales outstanding? Round your answer to one decimal place. days
What is the average amount of receivables? Round your answer to the
nearest dollar. Do...
Problem 16-06 Receivables Investment Snider Industries sells on terms of 3/10, net 35. Total sales for...
Problem 16-06
Receivables Investment
Snider Industries sells on terms of 3/10, net 35. Total sales
for the year are $510,000. Thirty percent of customers pay on the
10th day and take discounts; the other 70% pay, on average, 40 days
after their purchases. Assume 365 days in year for your
calculations.
What is the days sales outstanding? Round your answer to one
decimal place.
days
What is the average amount of receivables? Round your answer to
the nearest dollar. Do...
Problem 16-06 Receivables Investment Snider Industries sells on terms of 3/10, net 35. Total sales for...
Problem 16-06
Receivables Investment
Snider Industries sells on terms of 3/10, net 35. Total sales
for the year are $1,800,000. Thirty percent of customers pay on the
10th day and take discounts; the other 70% pay, on average, 40 days
after their purchases. Assume 365 days in year for your
calculations.***Please show work via excel
What is the days sales outstanding? Round your answer to one
decimal place.
days
What is the average amount of receivables? Round your answer to...
McEwan Industries sells on terms of 3/10, net 30. Total sales for the year are $1,150,000;...
McEwan Industries sells on terms of 3/10, net 30. Total sales
for the year are $1,150,000; 40% of the customers pay on the
10th day and take discounts, while the other 60% pay, on
average, 90 days after their purchases. Assume 365 days in year for
your calculations.
What is the days sales outstanding? Round your answer to two
decimal places.
days
What is the average amount of receivables? Round your answer to
the nearest cent. Do not round intermediate...
McEwan Industries sells on terms of 3/10, net 30. Total sales for the year are $794,000;...
McEwan Industries sells on terms of 3/10, net 30. Total sales
for the year are $794,000; 40% of the customers pay on the 10th day
and take discounts, while the other 60% pay, on average, 90 days
after their purchases. Assume 365 days in year for your
calculations. The data has been collected in the Microsoft Excel
Online file below. Open the spreadsheet and perform the required
analysis to answer the questions below.
What is the days sales outstanding? Round...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 1. Practice searching 2. Continue learning the significance of special cases! 3. Learning how to write...
- Prepare journal entries to record each of the following PURCHASES transactions for Pink Pagoda Co. Please...
- 1. Uncle Iroh’s just made a mass M of tea, but it comes off the kettle...
- Assignment Star Company has been manufacturing 10,000 units of Part 13 per month. At this level of...
- How would I write a code from this following word problem? 3. Use the pow() and...
- Give an example of a 2x2 matrix of numbers that represent the changes in the size...
- Every COBOL program I've browsed professionally has had Paragraph numbers. It is somewhat of Programmer Preference/Art...
ADVERTISEMENT