Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 10, 2024

Help solving - Book Depot Inc. sells on terms of 1/20, net 80. What is the implicit cost of trade credit under these terms? Use

Help solving - Book Depot Inc. sells on terms of 1/20, net 80. What is the implicit cost of trade credit under these terms? Use a 365-day year. The answer is 6.14% but I do not know how to get to that in excel.

Formula for Implicit Costs of Trade Credit (APR) is

a/b, net c

a365

APR= X

100 a(c b)

1365

APR= X = 6.14%

100 1(80 20)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools for business decision making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

6th Edition

978-1119191674, 047053477X, 111919167X, 978-0470534779

Students also viewed these Finance questions

Question

★★★★★

An object with mass m moves along the x-axis. Its position as a function of time is given by x (t) = At Bt3, where A and B are constants. Calculate the net force on the object as a function of time.

Answered: 1 week ago

Question

★★★★★

The heights of U.S. men are normally distributed with a mean of 69 inches and a standard deviation of 3 inches. This means that the fraction of men with a height between a and b (with a Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★

explain the gap that job crafting fills in top-down job redesign approaches;

Answered: 1 week ago

Question

★★★★★

The stockholders equity for Dairy Place Drive-Ins (DP) on December 31, 2012, follows: On April 16, 2013, the market price of DP common stock was $20 per share. Assume DP distributed an 18% stock...

Answered: 1 week ago

Question

★★★★★

4 9 . In which special identity group does a user become a member when the user logs onto a computer locally or through Remote Desktop Services?a . Print Operatorsb.Networkc.Interactived.Systeme.Self

Answered: 1 week ago

Question

★★★★★

The smelting department of Company X has the following production and cost data for September: Production: Beginning work in process 200 units that are 100% complete as to materials and 82% complete...

Answered: 1 week ago

Question

★★★★★

Per the TAR Purchase and Sales Agreement, there is a period of time after the inspection period in which the parties can agree to any repairs. What is this period of time referred to as? Unset...

Answered: 1 week ago

Question

★★★★★

Researchers are interested in whether there is a difference between the number of brothers and number of sisters for graduate students. So they randomly selected 20 graduate students and asked each...

Answered: 1 week ago

Question

★★★★★

how would you compare the results between the lease assets vs total assets and the lease liabilities vs total liabilities visualization? finance lease assets are higher than finane lease liabilities...

Answered: 1 week ago

Question

★★★★★

You are an accounting associate assisting a compliance officer of a large private company. The compliance officer recently investigated concerns about accounting irregularities in journal entries...

Answered: 1 week ago

Question

★★★★★

A Pharmacy has four counter to serve Blood pressure test for customer. Customers arrive according to a Poisson distribution at the rate of 1 every 10 minutes. However, only 85% seek service at the...

Answered: 1 week ago

Question

★★★★★

please send handwritten solution for Q 4 When doing polling, for instance to gure out how popular a given candidate is, a common trick is to just ask N many people whether they support that...

Answered: 1 week ago

Question

★★★★★

Inventories a. Your bank is considering making an operating loan to the Voss Company to finance its inventory purchases, and you have been assigned the task of evaluating the Voss Companys inventory...

Answered: 1 week ago

Question

★★★★★

Multiple Choice: Asset Valuation Select the correct answer for each of the following: 1. Which of the following is likely to be reported at lower of cost or market? a. Supplies inventory. b. Finished...

Answered: 1 week ago

Question

★★★★★

Multiple Choice: Assigning Costs to Inventory Select the correct answer for each of the following: 1. A company with a small number of very expensive inventory items may find which of the following...

Answered: 1 week ago

Previous Question Next Question