Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me solve 3A- the current answer is wrong Bond Company budgets the following purchases of direct materials for the first quarter of the

please help me solve 3A- the current answer is wrong
image text in transcribed
image text in transcribed
Bond Company budgets the following purchases of direct materials for the first quarter of the year: All purchases of direct materials are made on credit. On average, the company pays for 80% of its purchases in the month of acquisition and the remainder in the following month. Purchases take place fairly evenly throughout the month. Required: 1. For the months of February and March, what are the budgeted cash payments for purchases of direct materials under the assumption that there is no (cash) discount for early payment? 2. For the months of February and March. what are the budgeted cash payments for purchases of direct materials under the assumption that the purchase terms are 2/15, net 30 ? The company's policy is to take advantage of all cash discounts for early payment 3a. Using the purchase terms in Requirement 2, calculate the opportunity cost if Bond does not decide to take advantage of the early payment discount. 3b. Can it be considered good economic policy to take advantage of early payment discounts? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Using the purchase terms in Requirement 2, calculate the opportunity cost if Bond does not decide to take advantage of the assumpu(in und utere is t10 (Casti) uscourn tor ediry payment: 2. For the months of February and March, what are the budgeted cash payments for purchases of direct materials under the assumption that the purchase terms are 2/15, net 30 ? The company's policy is to take advantage of all cash discounts for early payment 3a. Using the purchase terms in Requirement 2, calculate the opportunity cost if Bond does not decide to take advantage of the ear payment discount. 3b. Can it be considered good economic policy to take advantage of early payment discounts? (x) Answer is complete but not cntirely correct. Complete this question by entering your answers in the tabs below. Using the purchase terms in Requirement 2 , calculate the opportunity cost if Bond does not decide to take advantage of the early payment discount. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (1.e.123412.34%)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Quality And GMP Auditing Clear And Simple

Authors: James L. Vesper

1st Edition

0367400901, 978-0367400903

More Books

Students also viewed these Accounting questions

Question

5. Structure your speech to make it easy to listen to

Answered: 1 week ago

Question

1. Describe the goals of informative speaking

Answered: 1 week ago