8A3:

Pets Store Inc. sells on terms of 3/15, net 70. What is the effective annual cost of trade credit under these terms? Use a 365-day year.

Round the answer to two decimal places in percentage form.

8B3:

Post Card Depot, an large retailer of post cards, orders 3,090,712 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 16 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.06 per post card per year. The ordering cost is $474 per order.

What is the annual total inventory management costs of post card inventory?

(Round the answer to two decimal places).

8C3:

Cheesburger and Taco Company purchases 15,931 boxes of cheese each year. It costs $13 to place and ship each order and $7.35 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders.

How many orders will be placed each year?Round the answer to the whole number

8D3:

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 Days payables outstanding (Payables conversion period).

Round the answers to two decimal places

Prepaid expenses $10,700 Total current $312,600 liabilities Total current assets $873,700 Long-term debt $225,000 Gross fixed assets $1,514,000 Par value and $117,000 paid-in-capital Less: accumulated depreciation $315,000 Retained Earnings $1,418,100 Net fixed assets $1,199,000 Common Equity 1,535,100 Total liabilitiesexpenses Depreciation expense EBIT Interest expense Earnings before taxes Income taxes Net income $115,000.00 $245,886.00 $29,600.00 $216,286.00 $86,514.40 Total assets $2,072,700 and owner's $2,072,700 equity Income Statement, Year of 2013 Net sales (all credit)$3,256,600.00 Less: Cost of goods sold Selling and administrative $323,000.00 $2,572,714.00 Balance Sheet December 31, 2013 Cash and marketable securities Accounts receivable Inventories $112,000 $325,000 $426,000 Accounts payable $21 1,000 Notes payable $51,500 Accrued expenses$50,100