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You place an order for 440 units of inventory at a unit price of $105. The supplier offers terms of 1/10, net 90. (Do not round intermediate...

You place an order for 440 units of inventory at a unit price of $105. The supplier offers terms of 1/10, net 90. (Do not round intermediate calculations.)

   
 

a-1

How long do you have to pay before the account is overdue?

  

  Days until overdue  days  

  

a-2

If you take the full period, how much should you remit?

  

  Remittance $   

    
 

b-1

What is the discount being offered? (Enter your answer as a percent.)

    

  Discount offered  %  

   

b-2

How quickly must you pay to get the discount?

  

  Number of days  days  

    

b-3

If you do take the discount, how much should you remit?

  

  Remittance $   

  
 

c-1

If you don’t take the discount, how much interest are you paying implicitly?

  

  Implicit interest $   

   

c-2

How many days’ credit are you receiving?


 

  Days' credit  days  


Top Answer

A1) Days until overdue = 90 days A2) Remittance = $46,200 (440×$105) B1) Discount offered = 1% B2)... View the full answer

3 comments
  • b3 and c1 ? stumped
    • mbagirl2016
    • Jul 20, 2016 at 4:16pm
  • B3 : - 45,738
    • Anitors
    • Jul 20, 2016 at 4:20pm
  • C1: 462
    • Anitors
    • Jul 20, 2016 at 4:20pm

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