How can I solve this question for Finance
Ll'lUk Homework o 5M" Help Save & Exit Submit 1 Problem 8-3 5 S. Pumpkins has an average inventory of $630,000, with an annual turnover rate of eight times. The average accounts receivable polnts balance is $520,250, and customers pay on average in 30 days. 8. Pumpkins pays accounts in 45 days. Slipped a. Calculate S. Pumpkins' average accounts payable balance. {Use 365 days in a year. Do not round intermediate calculations. Round the nal answer to the nearest whole dollar.) Average accounts payable $ Prim b. Calculate its annual sales. {Use 365 days in a year. Do not round intermediate calculations. Round the nal answer to the nearest whole dollar.} "Fl References Annual sales $ Ll'lUk Homework o 5M" Help Save & Exit Submit 2 0 Problem 8-9 5 McGri Dog Food Company normally takes 20 days to pay for average daily credit purchases of $9,000. Its average daily sales are points $10,000 and it collects accounts in 25 days. Skinned a. What is its net credit position? Net credit position 53 F b. Ifthe rm extends its average payment period from 20 days to 32 days [and all else remains the same}, what is the rm's new net "I" credit position? (Negative answer should be indicated by a minus sign. Do not round intermediate calculations.) Fl New net credit position $ References Check my work 3 Problem 8-29 5 Blue Grass Filters requires additional financing. Currently, it pays for all purchases on the discount date under terms of 2/15, net 75. Its points banker will lend funds at 11 percent. Skipped a. Should Blue Grass Filters obtain funding from the bank or by forgoing the cash discount? (Use 365 days in a year.) O Bank discount Print O Forgoing cash discount b. Not available in connect. Referencespolnts skipped Prim References Problem 8-31 The Reynolds Company buys from its suppliers on terms of 41'10, net 60. Reynolds has not been utilizing the discount offered and has been taking 72 days to pay its bills. The suppliers seem to accept this payment pattern, and Reyn old's credit rating has not been hurt. Mr. Duke. Reynolds Company's vicepresident, has suggested that the company begin to take the dis count offered. Mr. Duke proposes the company borrow from its bank at a stated rate of 19 percent. The bank requires a 10 percent compensating balance on these loans. Current account balances would not be available to meet any of this required compensating balance. a. Calculate the cost of not taking a cash discount. {Use 365 days in a yeal'. Do not round intermediate calculations. Round the nal answer to 2 decimal places} Cost of not taking a cash discount % b. Calculate the annual rate of interest if the company borrows from the bank. (Use 365 days in a year. Do not found intermediate calculations. Round the nal answer to 2 decimal places} Annual rate of Interest |:| % c. Do you agree with Mr. Duke's proposal? 0 Yes 0 No ems Homework 0 Salted Help amass: Submit 5 . Problem 8-33 10 Neveready Flashlights Inc. needs $480,000 to take a cash discount at 2llO, net 70. A banker will loan the money for 60 days at an points interest cost of$1300 Still!" a. What is the annual rate on the bank loan? (Use 355 days in a year. Do not round intermediate calculations. Round the nal answer to 2 decimal places} 6 Annual rate :l is b. How much would it cost {in percentage terms) if the rm did not take the cash discount, but paid the bill in 70 days instead of 10 days? {Use 365 days in a year. Do not round intermediate calculations. Round the nal answer to 2 decimal places.) References Cost of not taking a cash discount |:| 'it c. Should the rm borrow the money to take the discount? 0 No 0 Yes
