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I need help with the blank yellow cells. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
I need help with the blank yellow cells.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 a) Effective Annual Rate (EAR) Notional purchase Discount (%) Days difference Discount ($) Rate Days difference in I year EAR Note: customers must pay within 20 days of invoice. To get the discount, they must pay within 10 days of invoice. c 1,000.00 0.25% 2.50 0.25% 36.50 0.10 D b) Average Collection Period Gross revenue Avg. receivables before new policy % paying early Avg. receivables after new policy Change in receivables Cost of capital Projected savings in capital costs mmus: discounts Projected savings net of discounts Gross margm Gross revenues must rise by: - in dollars - in percent 40.0% 800,000 533,333 7.5% 40,000 16,040 23,960 33.0%
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