BUSINESS COLLEGE

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%.

Answers

Answer 1

Answer:

Answer:

Memo

To: The Finance Manager

From: The Payables Accountant

Subject: Bank Loan to Pay Suppliers

Date: October 5, 2020

The above subject on our previous discussion refers.

This memo clarifies the advantage of borrowing from our bank the sum of $100,000 in order to offset the account of our supplier who has offered us the trade terms of 2/10, n/30.

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

You can compare this to the discount we shall receive from the supplier totaling $2,000 ($100,000 * 2%). We can even extend the bank loan to 2 months, thereby paying a total interest cost of $1,000 ($500 * 2).

The implication is that we shall be making some gains by taking advantage of the cash discount. May you approve the loan based on this clarifications.

Regards,

Tony Ohagwam

Explanation:

This memorandum attempts to justify the request for a bank loan in order to settle the bill of one of our company's suppliers. It demonstrates the huge financial benefits that are implicit in accepting cash discounts from suppliers.

Related Questions

Nolan Company's cash account shows a $29,193 debit balance and its bank statement shows $28,152 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $2,801. The June 30 bank statement lists $32 in bank service charges; the company has not yet recorded the cost of these services. In reviewing the bank statement, a $80 check written by the company was mistakenly recorded in the company’s books as $89. June 30 cash receipts of $3,853 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement. The bank statement included a $34 credit for interest earned on the company’s cash in the bank. The company has not yet recorded interest earned. Prepare a bank reconciliation using the above information.
You’ve been asked to participate at a prestigious and well-attended annual conference within your industry. Your participation requires that you sit on a panel of experts during the keynote session of the conference. This session focuses on discussing key industry trends and challenges, and it is expected to draw a large and engaged crowd. The session will include brief presentations by each panelist, as well as a question-and-answer portion where you will respond to the audience. Which of the following aspects of effective communication should you give the most attention during the conference session?A. Establishing your credibility as an industry expert.B. Linking your comments to comments made by other panelists.C. Integrating evidence into your comments.D. Making sure that your viewpoints are clearly heard.
Gilligan Co.'s bonds currently sell for $1,150. They have a 6.75% annual coupon rate and a 15-year maturity, and are callable in 6 years at $1,067.50. Assume that no costs other than the call premium would be incurred to call and refund the bonds, and also assume that the yield curve is horizontal, with rates expected to remain at current levels on into the future. Under these conditions, what rate of return should an investor expect to earn if he or she purchases these bonds, the YTC or the YTM?(A) 3.92%(B) 4.12%(C) 4.34%(D) 4.57%(E) 4.81%
Your friend, Suzie Whitson, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numbers, and shapes. Suzie’s product will target two groups: day care centers in warm climates and home school programs. Her company is Jiffy Jet and costs for last month follow: Factory rent $ 3,130 Company advertising 1,060 Wages paid to assembly workers 30,500 Depreciation for salespersons’ vehicles 2,200 Screws 535 Utilities for factory 845 Assembly supervisor’s salary 3,580 Sandpaper 185 President’s salary 5,180 Plastic tubing 4,050 Paint 285 Sales commissions 1,350 Factory insurance 1,170 Depreciation on cutting machines 2,000 Wages paid to painters 7,550 Assume that Suzie Whitson has decided to begin production of her outdoor children’s toy. Required: 1 and 2. Identify each of the preceding costs as either a product or a period cost. If the cost is a product cost, decide whether it is for direct materials (DM), direct labor (DL), or manufacturing overhead (MOH) and also identify each of the preceding costs as variable or fixed cost
Gourd Supermarkets has an extensive training program for all new employees and then has all employees spend a day in customer service and workplace safety training each year.Required:What contract is it: a. old social b. new social?

Which 3 are benefits of using apps with QuickBooks Online?

Answers

The QuickBooks Online can supply additional information about numerous aspects, cut down on data entering time, and are capable of meeting industry-specific requirements.

What is QuickBooks?

QuickBooks is an accounting software company whose products include desktop, internet, and cloud-based accounting solutions for processing bills and business payments.

QuickBooks is primarily aimed at small and medium-sized businesses. There are many advantages of the Quick book.

The advantages of QuickBooks include the following:

It can cut down on data entering time.

It can supply additional information about numerous aspects of a company.

They are capable of meeting industry-specific requirements.

Therefore, QuickBooks online furnishes many advantages to the business and individuals.

Learn more about the QuickBooks, refer to:

brainly.com/question/20734390

Answer:

- They can provide additional insight into various parts of a business

- They can reduce time spent on data entry

- They can solve industry-specific needs

Explanation:

A man works for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: splishy splashies, frizzles, and kipples. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, a man knows that complements are typically consumed together while substitutes can take the place of other goods.Run-of-the-Mills provides man's marketing firm with the following data: When the price of splishy splashies decreases by 5%, the quantity of frizzles sold increases by 4% and the quantity of kipples sold decreases by 6%. A man's job is to use the cross-price elasticity between splishy splashies and the other goods to determine which goods to a man marketing firm should advertise together.
Complete the first column of the following table by computing the cross-price elasticity between splishy splashies and frizzles, and then between splishy splashies and kipples. In the second column, determine if splishy splashies are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating should be recommended marketing with splishy splashies.Relative to Splishy Splashies Recommend Marketing with Splishy Splashies
Cross-Price Elasticity of Demand Complement or Substitute
Frizzles _____ _____ _____
Kipples _____ _____ _____

Answers

Answer and Explanation:

According to the given situation, when the amount of splishy splashies decrease by 5%, quantity of frizzles increases by 4%.

So, The cross price elasticity of frizzles relative to splishy splashies = Percentage change in quantity demand for frizzles ÷ Percentage change in price for splishy splashies

= 4 ÷ -5

= -0.80

Now,

Cross-price elasticity between splishy splashies and kipples = Percentage change in quantity demand for Kipples ÷ Percentage change in price for splishy splashies

= -6% ÷ -5%

= 1.20

b. Since there is negative cross-price elasticity between splishy splashies and frizzles, these products are complementary.

The elasticity of the cross-price between splendid splashies and kipples is positive, these goods being substitutes.

c. Here, I would therefore recommend Raskels marketing, since these two are used together.

The required Table are as shown below:-

Particulars Cross-Price Elasticity Complements Recommended

of Demand or Substitute Marketing with

splishy splashies

Frizzles 0.80 Complements Yes

Kipples 1.20 Substitute No

Coburn (beginning capital, $55,000) and Webb (beginning capital $95,000) are partners. During 2017, the partnership earned net income of $71,000, and Coburn made drawings of $17,000 while Webb made drawings of $25,000. Assume the partnership income-sharing agreement calls for income to be divided 30% to Coburn and 70% to Webb. Prepare the journal entry to record the allocation of net income.

Answers

Answer:

Given that,

Beginning capital of Coburn = $55,000

Beginning capital of Webb = $95,000

Partnership earned net income = $71,000

Coburn made drawings = $17,000

Webb made drawings = $25,000

Income-sharing ratio = 30:70

Coburn's share in profits = Net income earned × 30%

= $71,000 × 0.3

= $21,300

Webb's share in profits = Net income earned × 30%

= $71,000 × 0.7

= $49,700

Therefore, the journal entry is as follows:

Profit and loss A/c Dr. $71,000

To Coburn's capital A/c $21,300

To Webb's capital A/c $49,700

(To record the allocation of net income)

Pls help!!! will give brainly!!!Emma is a biomedical engineer who designs robots that perform intricate surgeries. Into which two career clusters that we have considered so far could Emma’s job fall? Give a reason for your choices.

Answers

Answer:

I believe this would be in the Engineering and technology pathway.

Explanation:

Examples of someone in a engineering and technology pathway are people like Biomedical engineers so it makes sense!

Which of the following statements is not true of a strategic inflection point?A) The term was coined by Andy Grove, past CEO of Intel Corporation
B) This represents what happens to a business when a major change takes place due to the introduction of new technology
C) This represents what happens to a business when a major change takes place due to a change in customers' values or a change in what customers prefer
D) This represents what happens to a business when a major change takes place due to a differentregulatory environment
E) A new CEO is an example of a strategic inflection point.

Answers

Answer:

The correct anwer is E) A new CEO is an example of a strategic inflection point.

Explanation:

The statement that "A new CEO is an example of a strategic inflection point" is false since to determine a strategic inflection point we rely on other factors that affect companies such as the power of competitors, the power of customers, the power of potential competitors, the power of suppliers and the power of substitutes.

For example, if my product or service is exceeded 10 times more by the competition in quality or price; we are talking about a strategic inflection point.

Sarah and Jane formed a partnership with capital contributions of $210,000 and $123,000, respectively. Peter contributed $86,000 to acquire an ownership interest of 12% in the new partnership. How much is the total bonus for the existing partners?