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- A Company sold 80,000 sold reversible shirts under a new sales promotional program during the year. Each shirt carried one coupon which entitled the customer to a P50 cash rebate. The entity estimated that 70% of the coupons will be redeemed even though only 35,000 coupons had been processed during the current year. what amount should be reported as rebate liability for unredeemed coupons at year-end? a. 1,225,000 b. 1,750,000 c. 0 d. 1,050,000Your firm just purchased $11,000 goods from your supplier on trade credit terms of 2/10 net 40. Your opportunity cost of funds is 9%. Find NPV of invoice if you paid on day 10 Find the minimum discount (d) that would motivate the buyer to pay earlyB Company offered a cash rebate of P20 on each P150 package of ballpen sold during the current year. Historically, 10% of customers’ mail in the rebate form. During the year 600,000 packages of ballpen are sold, and 25,000 P20 rebates are mailed to customers. What amount of rebate expense should be reported for the current year? a. 1,500,000 b. 500,000 c. 600,000 d. 1,200,000
- Hot Dog World is able to raise funds by issuing commercial paper with a face value of $500,000. If commercial paper is issued, the simple interest rate will be 4.5%, the time maturity woul dbe 90 days, and the compnay woul dhave tp pay a transaction fee equal to 0.75% of the issue which would be taken out of the issue amount. Compute the commercial paper's APR and rEAR.An investment dealer paid $24 756.25 to acquire a $25 OOO, 182-day Government of Canada treasury bill at the weekly auction. What was the annual rate of return on this T-bill?1. A trading firm traded their brand-new computers with a margin of 65% based on their cost. One computer is tagged at P75, 950. What is the percent margin based on cost? 2. An invoice dated June 27 for P20, 850 carried a cash discount of 5/30. If this invoice is paid on July 25, how much should be the payment?
- Commercial paper is usually sold at a discount. Fan Corporation has just sold an issue of 103-day commercial paper with a face value of $1.5 million. The firm has received initial proceeds of $1,473,557. (Note: Assume a 365-day year.) a. What effective annual rate will the firm pay for financing with commercial paper, assuming that it is rolled over every 103 days throughout the year? b. If a brokerage fee of $13,986 was paid from the initial proceeds to an investment banker for selling the issue, what effective annual rate will the firm pay, assuming that the paper is rolled over every 103 days throughout the year? Answers a. The effective annual rate the firm will pay for financing with commercial paper, assuming that it is rolled over every 103days throughout the year, is ___%.(Round to two decimal places.) b. The effective annual rate the firm will pay with the brokerage fee, assuming that the paper is rolled over every 103 days throughout the year, is…A merchant sells a product on credit for S/ 50,000 and offers to pay it to a client in three bills of equal nominal value and with maturities at 45, 75 and 105 days respectively, applying on them an APR of 30% with bimonthly capitalization. If this merchant plans to discount the bills in a bank 15 days after the sale is made, being the effective discount rate 2% per month, find: 1. The face value of the bills.2. The net cash value received on discounting the bills.3. Calculate the discount.On June 04, FDN Company sold merchandise to ABC Company and accepted a 90-day, 12% P90,000 note. After 30 days, FDN Company decided to discount the note to XYZ Bank that offers a 14% discount rate. How much is the cash received upon discounting?
- 1) A factoring company discounts a client a document with a maturity value of 40,000 at a discount rate of 16% simple per year with a maturity of 90 days. On the same day, the factoring company discounts the document at a financial institution that offers a discount rate of 15% simple annual rate. What was the profit that the factoring company obtained? options: 100 72 181 142Dairy, Inc. offered an ice cream scoop in exchange for 8 labels of ice cream and $3.00. The ice cream scoops cost $7.00 each. Experience indicates that 45% of the coupons will be redeemed. Customers can redeem the coupons, receipts and cash through February 28, 2021. Dairy, Inc. sold 40,000 gallons of ice cream. 15,000 of the coupons were redeemed in 2020. What is the amount of premium expense to be recognized on the income statement for the year ended 2020? If all of the remaining ice cream scoops were issued in 2021, what is the amount of the premium expense to be recognized in 2021? What is the amount of the premium liability as of 12/31/20? Please provide a detailed explanation.A company can issue a 45-day $10 million commercial paper at a rate of 4.50%. It can reduce the rate to 4.35% if it is backed by a standby letter of credit (SBLC). A bank is willing to issue the SBLC for a fee of 10 basis points. The following is true: A The fee for issuing the SBLC is $10,000 B The net savings to the issuer is $1,250 C The amount received by the issuer for the commercial paper without an SBLC is $9,945,625. D The difference in the amount received by the issuer with and without the SBLC is $1,875.