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Anna11
13 days ago
7

You are the payables accountant for a medium sized electrical contracting company. You are paying bills with purchase discounts

but can't take advantage of them because the cash balance in the checking account is low. You approached your boss with a suggestion that the company borrow money at the bank so you can pay the bills in time to take the discounts. Your boss thinks you are a little crazy to recommend borrowing from the bank (currently charging 6% interest) to take advantage of 1-2% discounts.
Write him a memorandum laying out your suggestion and justifying your suggested course of action.
Respond to two other student's posts.
Use actual numbers in your memo. For example, if you need to borrow money to pay a $10,000 bill that offers terms of 2/10, n/30 and the loan's interest rate is 6%.
Business
1 answer:
soldi70 [3.1K]13 days ago
4 0

Answer:

Memo

To: The Finance Manager

From: The Payables Accountant

Subject: Bank Loan to Pay Suppliers

Date: October 5, 2020

This memo refers to our prior discussion regarding the subject above.

In this memo, I aim to clarify the benefits associated with borrowing $100,000 from our bank to settle our supplier account, who has presented a trade offer of 2/10, n/30.

Recall that the interest rate for the bank loan is 6% per annum. If we choose to borrow within the month and repay after 30 days, the interest cost will amount to $500 ($100,000 * 6%/12).

Comparatively, we will receive a discount from the supplier totaling $2,000 ($100,000 * 2%). We could further extend the bank loan for another month, resulting in a total interest expense of $1,000 ($500 * 2).

Consequently, we stand to benefit by leveraging the cash discount. Kindly consider approving the loan based on these details.

Best regards,

Tony Ohagwam

Explanation:

This memo seeks to justify the necessity of a bank loan to fulfill a supplier's bill. It highlights the significant financial advantages obtained through the acceptance of cash discounts from suppliers.

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Dividends on CCN corporation are expected to grow at a 9% per year. Assume that the discount rate on CCN is 12% and that the exp
marusya05 [3091]

Answer:

P14 = $55.69545045394 rounded to $55.70

Explanation:

The dividend discount model (DDM) based on constant growth can help determine the current stock price. It assesses a stock’s price using the present value of the anticipated future dividends. The formula for determining today's price with a constant growth DDM is,

P0 = D1 / (r - g)

Where,

  • D1 represents the expected dividend for Year 1 or the following year
  • g denotes the constant growth rate for dividends
  • r signifies the discount rate or the required rate of return

To find the stock price today, we will utilize the dividend expected in Year 1. Consequently, to compute the stock price 14 years into the future, we calculate D15. D15 can be figured out as follows,

D15 = D1 * (1+g)^14

D15 = 0.50 * (1+0.09)^14

D15 = $1.67086351362 rounded to $1.67

Now applying the DDM formula for the price,

P14 = 1.67086351362 / (0.12 - 0.09)

P14 = $55.69545045394 rounded to $55.70

6 0
1 month ago
List at least 12 electrical notations found on the plans for this residence. refer to the plans at the back of the text.
Free_Kalibri [3151]
Answer:  
Devices & Their Corresponding Symbols 
Device 
Name 
 Device
 Symbol
 
 Device
 Image 
 Commentary 
 Notation 
 plan note symbol    
 One of the most crucial symbols found on architectural plans. This symbol indicates that there is a "note" relevant to the device or area 
 Switch
 
 switch electrical symbol 
 light switch  
 Details such as style, possible model numbers, and colors of the switches will be noted in the plans. 
 Switch - 3 Way 
 3-way switch electrical symbol 
 Switch - 4 Way
 4-way switch electrical symbol 
 Switch - Dimmer
 dimmer switch electrical symbol 
 light switch dimmer  
 Information on the style, model numbers, and colors of the dimmers will be included in the notes. 
 Switch - Dimmer - 3 Way 
 3-way dimmer switch electrical symbol 
 Receptacle - Duplex
 
 duplex receptacle electrical symbol 
 duplex receptacle  
 The style, model numbers, and colors of the receptacles will also be included in the notes. 
 Receptacle - Duplex - One Switched
 duplex switched receptacle electrical symbol 
 Receptacle - Duplex - GFCI
 duplex receptacle GFCI electrical symbol 
 duplex GFCI receptacle  
 The receptacles’ styles, model numbers, and colors will be detailed in the plans. 
 Receptacle - Duplex - Waterproof

 
 duplex waterproof receptacle electrical symbol 
 when in use, weatherproof receptacle cover 
  The receptacle itself isn’t waterproof; it’s the cover that safeguards against environmental factors. 
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 single receptacle electrical symbol 
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 This receptacle is specifically designed for clocks, featuring a recessed socket to allow the clock to sit flush against the wall. Plans might include a "C" on the bottom right of the symbol to indicate it is tailored for a clock. 
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 240 VAC receptacle electrical symbol
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3 0
1 month ago
Tyler company has been approached by a new customer with an offer to purchase 6,000 units of its product kr200 at a price of $11
Katen [2907]
Thus, Tyler's company has acquired a new customer who is willing to purchase 20% of the annual production at a 40% discount.
8 0
12 days ago
Which of these statements about the production order quantity model is FALSE? The production order quantity model is appropriate
Katen [2907]

Answer:

The question is rephrased to include the options:

A. The production order quantity model applies under conditions where the basic EOQ model's assumptions hold true, except that receiving is not instantaneous.

B. Average inventory exceeds half the quantity of production order.

C. Due to the non-instantaneous receipt, some items are used immediately rather than being stored.

D. All other things being equal, a lower demand rate to production rate ratio results in a smaller production order quantity.

E. All options are true.

The right answer is option B, "Average inventory is more than one-half of the production order quantity."

Explanation:

Having inventory allows for a division within the production stages, separating finished products from those that are not yet completed, potentially generating income for the company.

An average inventory will be less than half of the production order quantity.

The production order quantity model allows for gradual receipt of orders rather than a single bulk delivery.

This model aids companies in managing their inventory holding costs and average fixed ordering expenses, ultimately helping them to check and reduce inventory costs and providing clarity on appropriate production quantities at any time.

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25 days ago
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Scilla [3249]
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8 0
1 month ago
Read 2 more answers
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