Question

4. Cost of trade credit Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which will affect the actual cost of asset being sold for the buyer and the seller. Consider this case: Green Moose Industries buys most of its raw materials from a single supplier. This supplier sells to Green Moose on terms of 1/10, net 30. (Note: Round all intermediate calculations to four decimal places, The cost per period of the trade credit extended to Green Moose is and your final answer to two decimal places.). , assuming a 365-day year. (Note: Round all intermediate calculations to four Green Moose's trade credit has a nominal annual cost of decimal places, and your final answer to two decimal places.) If Green Moose Industries's supplier shortens its discount period to five days, this will the cost of the trade credit.

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

ACCOUNTS latest - Microsoft Excel (Product Activation Failed) Review File Home Insert Page Layout Formulas Data View Add-Ins Σ AutoSum - Cut AC Wrap Text Calibri 11 General Copy Fill Merge & Center Insert Delete Format Paste B I U +.0 .00 Conditional Format Cell Sort & Find & % .00 0 Format Painter Clear Filter Select Formatting as Table Styles Clipboard Font Alignment Number Styles Cells Editing fox IA394 HZ IA IB IC ID IE IF IG IH IK IL 378 379 (discount/(1-discount)) |((0.01/(1-0.01)) 380 ANS 1 COST PER PERIOD OF TRADE CREDIT EXTENDED = 381 COST PER PERIOD OF TRADE CREDIT EXTENDED = 0.01/0.99 382 COST PER PERIOD OF TRADE CREDIT EXTENDED = 1.01% 383 COST PER PERIOD OF TRADE CREDIT EXTENDED = 384 ANS 2 385 NOMINAL ANNUAL COST OF CREDIT ((discount / (1-discount)) (365 (final date - early date)) ((0.01/0.99))*(365/(30-10)) = 386 387 18.43% 388 389 ANS 3 DECREASE COST OF CREDIT 390 391 392 393 394 395 396 397 398 dupont ove CASH BUDGETbudget 45 days cycle ВЕР, OL FL float B-S profit loss FIFO DIFF ANALYSIS ROE, BV MV ratio VARIANCE ratios DETROIT SALES BUDGET Rea erences: S69 II 120% FFF 05:51 WA TENG 27-11-2019