8A2:

Book Depot Inc. sells on terms of 1/20, net 35. What is the implicit cost of trade credit under these terms? Use a 365-day year.

Round the answer to two decimal places in percentage form.

8B2:

Post Card Depot, an large retailer of post cards, orders 6,930,943 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 9 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.26 per post card per year. The ordering cost is $470 per order.

What is the annual ordering cost of the post card inventory?

(Round the answer to two decimal places)

8C2:

Cheeseburger and Taco Company purchases 17,458 boxes of cheese each year. It costs $13 to place and ship each order and $3.55 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

What is the average inventory held during the year?

8D2:

Canadian Bacon Inc. financial statements are presented in the table below.

Based on the information in the table, and using a 365-day year, calculate Average Day's Purchases.

Round the answers to two decimal places

Accounts $498,000 Notes payable $51,500 receivable Inventories $799,000 Accrued expenses $58,300 Prepaid expenses $19,300 Total current liabilities $326,800 Net sales (all credit)$5,386,600.00 Less: Cost of goods 35 3,716,754.00 sold Selling and administrative $329,000.00 Total current assets $1,503,300 Long-term debt $215,400 Gross fixed assets $1,978,000 Par value and $128,000 paid-in-capital Less: accumulated $478,000 depreciation Retained Earnings $2,333,100 Net fixed assets $1,500,000 Common Equity 2,461,100 Total liabilities Total assets $3,003,300 and owner's $3,003,300 equity Income Statement, Year of 2015