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You are buying goods worth 75000 from a firm that

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You are buying goods worth $75,000 from a firm that offers the credit terms of 2/10, net 30. What will be the actual payment if you$73,500$74,250$75,000$76,500Cash discount = 75,000 x .02 = $1,500Actual payment = 75,000 - 1,500 = $73,500
A retailer buys Christmas merchandize from the manufacturer on Sep. 1. The manufacturer postdates the invoice to Dec. 31, andWhen is the payment due?
Which of the following is the least expensive source of credit information?
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53.award:1.00 pointA firm is considering a one-time sale of $100,000 to a customer. The cost of goods sold for this sale is $90,000. If the probability oexpected profit from this transaction?Moody'sStandard & Poor'sBond ratings
54.award:1.00 pointWhat is the break-even probability of collection when the present value of revenues from a sale is $100,000 and the present value1.000.870.740.13p = PV(cost)/PV(revenue) = 87,000/100,000 = 0.87
55.award:1.00 pointA firm with ______ profit margin should extend credit to customers with a high probability of default.
56.award:1.00 pointJomal Corporation expects to receive $2,300 along with costs of $1,800 on each non-delinquent sale on credit. The probability ofshould be extended.
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57.award:1.00 pointSamana Corporation expects to receive $1,500 along with costs of $1,000 on each non-delinquent sale on credit. The probabilityshould be extended.
58.award:1.00 pointAjax predicts that if a customer pays on the first sale, it is assured that it is a reliable customer. As such, it expects that customer toyears. Ajax calculates present value with a 15% rate of return. There is a 90% probability that Ajax will secure a reliable customer.have to incur a loss of $500. Determine the expected benefit if credit is granted.$1,657$1,757$1,857$1,957Present value of $350 profit for 12 years at 15% = $1,897p x PV(REV - COST) - (1-p) x PV(COST)(.9 x $1,897) - (.1 x $500) = 1,657
59.award:1.00 pointXian Corporation predicts that if a customer pays on the first sale, it is assured that it is a reliable customer. As such, it expects thayear for 10 years. Ajax calculates present value with a 9% rate of return. There is a 70% probability that Ajax will secure a reliableAjax will have to incur a loss of $800. Determine the expected benefit if credit is granted.
60.award:1.00 point

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Term
Spring
Professor
N/A
Tags
Interest, credit score, Credit rating, credit manager, Credit bureau

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