Question

1.) Williams & Sons last year reported sales of $32 million, cost of goods sold (COGS)...

1.) Williams & Sons last year reported sales of $32 million, cost of goods sold (COGS) of $24 million, and an inventory turnover ratio of 4. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 6 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Enter your answer in dollars. For example, an answer of $1.23 million should be entered as 1,230,000,000. Round your answer to the nearest dollar.

2.) What are the nominal and effective costs of trade credit under the credit terms of 2/10, net 40? Assume a 365-day year. Do not round intermediate calculations. Round your answers to two decimal places.

Nominal cost of trade credit:   %

Effective cost of trade credit:   %

3.) A large retailer obtains merchandise under the credit terms of 1/20, net 35, but routinely takes 55 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's effective cost of trade credit? Assume a 365-day year. Do not round intermediate calculations. Round your answer to two decimal places.

Homework Answers

Answer #1

I have explained all the three questions step by step, if you face any doubt please ask in comment. Thank you !!

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Williams & Sons last year reported sales of $32 million, cost of goods sold (COGS) of...
Williams & Sons last year reported sales of $32 million, cost of goods sold (COGS) of $24 million, and an inventory turnover ratio of 4. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 6 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Enter your answer in...
Williams & Sons last year reported sales of $49 million, cost of goods sold (COGS) of...
Williams & Sons last year reported sales of $49 million, cost of goods sold (COGS) of $40 and an inventory turnover ratio of 4. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 5 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Round your answer to the...
Williams & Sons last year reported sales of $73 million, cost of goods sold (COGS) of...
Williams & Sons last year reported sales of $73 million, cost of goods sold (COGS) of $60 and an inventory turnover ratio of 5. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 6 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Round your answer to the...
Williams & Sons last year reported sales of $22 million, cost of goods sold (COGS) of...
Williams & Sons last year reported sales of $22 million, cost of goods sold (COGS) of $18 and an inventory turnover ratio of 2. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 3 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Round your answer to the...
Inventory Management Williams & Sons last year reported sales of $55 million, cost of goods sold...
Inventory Management Williams & Sons last year reported sales of $55 million, cost of goods sold (COGS) of $45 million, and an inventory turnover ratio of 5. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 9 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Enter your...
Cost of Trade Credit A large retailer obtains merchandise under the credit terms of 1/20, net...
Cost of Trade Credit A large retailer obtains merchandise under the credit terms of 1/20, net 30, but routinely takes 65 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's effective cost of trade credit? Assume a 365-day year. Do not round intermediate calculations. Round your answer to two decimal places. %
Cost of Trade Credit A large retailer obtains merchandise under the credit terms of 2/15, net...
Cost of Trade Credit A large retailer obtains merchandise under the credit terms of 2/15, net 45, but routinely takes 60 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's effective cost of trade credit? Assume a 365-day year. Do not round intermediate calculations. Round your answer to two decimal places.
Problem 16-01 Inventory Management Williams & Sons last year reported sales of $74 million, cost of...
Problem 16-01 Inventory Management Williams & Sons last year reported sales of $74 million, cost of goods sold (COGS) of $60 and an inventory turnover ratio of 5. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 6 while maintaining the same level of sales and COGS, how much cash will be freed up?
A large retailer obtains merchandise under the credit terms of 1/20, net 30, but routinely takes...
A large retailer obtains merchandise under the credit terms of 1/20, net 30, but routinely takes 65 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's effective cost of trade credit? Assume a 365-day year. Do not round intermediate calculations. Round your answer to two decimal places.
Problem 16-04 Cost of Trade Credit A large retailer obtains merchandise under the credit terms of...
Problem 16-04 Cost of Trade Credit A large retailer obtains merchandise under the credit terms of 3/20, net 40, but routinely takes 70 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's effective cost of trade credit? Assume 365 days in year for your calculations. Do not round intermediate calculations. Round your answer to two decimal places. %
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT