Question

Bobby & Company sells on terms of 1/10, net 30. Gross sales last year were $4,926,500...

Bobby & Company sells on terms of 1/10, net 30. Gross sales last year were $4,926,500 and accounts receivable averaged $431,000. Half of Bobby's customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Bobby's nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.) Do not round intermediate calculations. Round your answers to two decimal places.

Homework Answers

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
Grunewald Industries sells on terms of 1/10, net 50. Gross sales last year were $4,328,500 and...
Grunewald Industries sells on terms of 1/10, net 50. Gross sales last year were $4,328,500 and accounts receivable averaged $410,000. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewald's nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.) Do not round intermediate calculations. Round your answers to...
Grunewald Industries sells on terms of 3/10, net 50. Gross sales last year were $4,015,000 and...
Grunewald Industries sells on terms of 3/10, net 50. Gross sales last year were $4,015,000 and accounts receivable averaged $498,500. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewald's nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.) Do not round intermediate calculations. Round your answers to...
Grunewald Industries sells on terms of 2/10, net 30. Gross sales last year were $4,299,000, and...
Grunewald Industries sells on terms of 2/10, net 30. Gross sales last year were $4,299,000, and accounts receivable averaged $412,000. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewald's nondiscount customers? (Hint: Calculate sales/day based on a 365-day year; then get average receivables of discount customers; then find the DSO for the nondiscount customers.) Do not round intermediate calculations. Round your answers to two decimal...
Grunewald Industries sells on terms of 3/10, net 40. Gross sales last year were $4,723,000, and...
Grunewald Industries sells on terms of 3/10, net 40. Gross sales last year were $4,723,000, and accounts receivable averaged $418,000. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewald's nondiscount customers? (Hint: Calculate sales/day based on a 365-day year; then get average receivables of discount customers; then find the DSO for the nondiscount customers.) Do not round intermediate calculations. Round your answers to two decimal...
Problem 16-09 Cost of Trade Credit Grunewald Industries sells on terms of 3/10, net 30. Gross...
Problem 16-09 Cost of Trade Credit Grunewald Industries sells on terms of 3/10, net 30. Gross sales last year were $4,477,500 and accounts receivable averaged $412,500. Half of Grunewald's customers paid on the 10th day and took discounts. What are the nominal and effective costs of trade credit to Grunewald's nondiscount customers? (Hint: Calculate daily sales based on a 365-day year, calculate the average receivables for discount customers, and then find the DSO for the nondiscount customers.) Do not round...
McEwan Industries sells on terms of 3/10, net 30. Total sales for the year are $1,326,00;...
McEwan Industries sells on terms of 3/10, net 30. Total sales for the year are $1,326,00; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 82 days after their purchases. Assume 365 days in a year for your calculations. d. What is the percentage cost of trade credit to customers who do not take the discount and pay in 82 days? Nominal cost % Effective cost % e. what would...
McEwan Industries sells on terms of 3/10, net 40. Total sales for the year are $1,870,500;...
McEwan Industries sells on terms of 3/10, net 40. Total sales for the year are $1,870,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 82 days after their purchases. Assume 365 days in year for your calculations. What is the days sales outstanding? Round your answer to two decimal places. What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate calculations....
McEwan Industries sells on terms of 3/10, net 35. Total sales for the year are $1,461,000;...
McEwan Industries sells on terms of 3/10, net 35. Total sales for the year are $1,461,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 50 days after their purchases. Assume 365 days in year for your calculations. What is the days sales outstanding? Round your answer to two decimal places.   days What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate...
McEwan Industries sells on terms of 3/10, net 40. Total sales for the year are $1,775,000;...
McEwan Industries sells on terms of 3/10, net 40. Total sales for the year are $1,775,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 52 days after their purchases. Assume 365 days in year for your calculations. What is the days sales outstanding? Round your answer to two decimal places. days What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate...
McEwan Industries sells on terms of 3/10, net 25. Total sales for the year are $746,500;...
McEwan Industries sells on terms of 3/10, net 25. Total sales for the year are $746,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 52 days after their purchases. Assume 365 days in year for your calculations. What is the days sales outstanding? Round your answer to two decimal places.   days What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT