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26-13. Please see attached. I need the answers and associated excel formulas. Thank you. Problem 26-13 Simple Simon's Bakery purchases supplies on terms of 1/10,
26-13. Please see attached. I need the answers and associated excel formulas. Thank you.
Problem 26-13 Simple Simon's Bakery purchases supplies on terms of 1/10, net 25. If Simple Simon's choo take the discount offered, it must obtain a bank loan to meet its short-term financing needs. A local bank has quoted Simple Simon's owner an interest rate of 12% on borrowed funds. Sh Simple Simon's enter the loan agreement with the bank and begin taking the discount? Terms Comparable loan 1.00% 12.00% 10 net 25 Additional days Interest rate (additional days) Cost of payables Decision: Requirements 1. In cell D9, by using cell references, calculate the additional days of credit (1 pt.). 2. In cell D10, by using cell references, calculate the implicit interest rate charged for the addit days of credit (1 pt.). 3. In cell D11, by using cell references, calculate the cost of payables (1 pt.). 4. In cell D13, type either trade credit or bank loan after comparing the cost of payables agai the comparable loan offered by the bank (1 pt.). t 25. If Simple Simon's chooses to short-term financing needs. A 12% on borrowed funds. Should in taking the discount? s of credit (1 pt.). est rate charged for the additional les (1 pt.). ing the cost of payables againstStep by Step Solution
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