A buyer failed to take advantage of the vendor's credit terms of 1/10, n/45, but instead paid the invoice in full at the end of 45 days. By not taking advantage of the cash discount, the equivalent annual interest lost on the amount of the purchase is:
A. 10.4%
B. 10.6%
C. 6.6%
D. 13.4%
E. 9.0%
Answer: A
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Gross margin equals the difference between net sales and
a. net income. b. cost of goods sold plus operating expenses. c. operating expenses. d. cost of goods sold.
Primary processes
a. apply only to a just-in-time environment. b. include information systems and human resources. c. add value to a product or service. d. limit bottlenecks during production.
Use the financial data shown below to calculate the following ratios for the current year:(a) Current ratio.(b) Acid-test ratio.(c) Accounts receivable turnover.(d) Days' sales uncollected.(e) Inventory turnover.(f) Days' sales in inventory.Income statement data Sales (all on credit)$650,000Cost of goods sold 425,000Income before taxes78,000Net income54,600?Ending BalanceBeginning BalanceCash$ 19,500$ 15,000Accounts receivable (net) 65,00060,000Inventory71,50064,500Plant and equipment (net)195,000183,900Total assets$351,000$323,400Current liabilities $ 62,400$ 52,700Long-term notes payable97,500100,000
What will be an ideal response?
The corner-point solution method requires:
A) identifying the corner of the feasible region that has the sharpest angle. B) moving the iso-profit line to the highest level that still touches some part of the feasible region. C) moving the iso-profit line to the lowest level that still touches some part of the feasible region. D) finding the coordinates at each corner of the feasible solution space. E) none of the above