Question
Please answer questions 12 & 13 working Capital Management 12. The Mighty Power Tool Company has the following accounts on its books: Customer ABC DEF
Please answer questions 12 & 13
working Capital Management 12. The Mighty Power Tool Company has the following accounts on its books: Customer ABC DEF GHI NOP QRS Amount Owed (S) 50,000 35,000 15,000 75,000 42,000 18,000 82,000 36,000 Age (days) 35 5 10 22 40 12 53 90 The firm extends credit on terms of 1/15, net 30. Develop an aging schedule using 15-day increments through 60 days, and then indicate any accounts that have been outstanding for more than 60 days. Payables Management 13. Simple Simon's Bakery purchases supplies on terms of 1/10, net 25. If Simple Simon's chooses to take the discount offered, it must obtain a bank loan to meet its short-term financing needs. A local bank has quoted Simple Simon's owner an interest rate Of 12% on borrowed funds. Should Simple Simon's enter the loan agreement with the bank and begin taking the discount?
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