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PLEASE ANSWER A-C. table added Homework: Homework 7 Question 5, P16-6 (simila... Part 1 of 9 HW Score: 0%, 0 of 30 points O Points:
PLEASE ANSWER A-C.
table added
Homework: Homework 7 Question 5, P16-6 (simila... Part 1 of 9 HW Score: 0%, 0 of 30 points O Points: 0 of 4 Save Early Payment discount decisions Prairie Manufacturing has four possible suppliers, all of which offer different credit termis. Except for the differences in credit terms, their products and services are virtually identical. The credit terris offered by these suppliers are shown in the following table: - (Note: Assume a 365-day year.) a. Calculate the approximate cost of giving up the cash discount from each supplier. b. If the firm needs short-term funds, which are currently available from its commercial bank at 10% and if each of the suppliers is viewed separately, which, if any, of the suppliers' cash discounts should the fim give up? c. Now assume that the firm could stretch by 30 days its accounts payable (net period only) from supplier M. What impact, if any, would that have on your answer in part b relative to this supplier? a. The approximate cost of giving up the cash discount from supplier Jis %. (Round to two decimal places.) True Question 5, P16-6 (simila. HW Score: 16.00% 4.82 of 30 points Homework 7 Part of O Points: 0 of 4 decisions Prairie Manutacturing an tour possible suppliers, all of which alfer different credit terme. Except for the differences in credit ferma, their products and services are virtually identical. The cred are shown in the following table: (Note: Assume a 365-day ynar) e coaf of giving up the cash court from each supplier term funds, which are currently available from its commercial bank at 10%, and if each of the suppliers is viewed separately, which If any of the supplier cash discounts should the firm give up? m could stretch by 30 days is accounts payable (not period only) from supplier M. What impact any, would that have on your answer in part brelative to this supplier giving up the cash discount from supplier Data Table (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet) Supplier Credit torms J 3/5 net 50 EOM 2/30 net 100 EOM L 1/20 net 70 EOM M 2/10 net 100 EOM Print Done Clear All Step by Step Solution
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