Nieman Company purchased merchandise on account from Springhill Company for $5,400, terms 1/10, n/30. Nieman returned merchandise with an invoice amount of $900 and received full credit. a. If Nieman Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar.

Answer:

The amount of cash required for the payment is $4,455.

Explanation:

When Nieman Company purchased merchandise the entries will be :

Merchandise $5,400 (debit)

Account Payable : Springhill Company  $5,400 (credit)

When Nieman Company  returned some merchandise and received full credit, the entries will be:

Account Payable : Springhill Company  $900 (debit)

Merchandise $900 (credit)

When Nieman Company finally pays the invoice within the discount period.

1. They are granted a cash discount of 1%

2. Pay 99% of amount owing less the credit previously granted on returned merchandise.

Entries will be :

Account Payable : Springhill Company  $4,500 (debit)

Discount received $45 (credit)

Cash $4,455 (credit)

Conclusion :

The amount of cash required for the payment is $4,455.

An investor buys a 10-year, 7% coupon bond for $1,050, holds it for 1 year, and then sells it for $1,040. What was the investor's rate of return?

Gullett Corporation had $32,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additional $81,000 of raw materials. The journal entry to record the purchase of raw materials would include a:

A North Face retail store in Chicago sells 500 jackets each month. Each jacket costs the store $100 and the company has an annual holding cost of 25 percent. The fixed cost of a replenishment order (including transportation cost) is $100. The store currently places a replenishment order for Q.

1. What is the annual holding and ordering cost?

2. On average, how long does a jacket spend in inventory?

3. If the retail store wants to minimize ordering and holding cost, what order size do you recommend?

4. How much would the optimal order reduce holding and ordering cost relative to the current policy?

You are an analyst working for a mutual fund. Your job is to select stocks for the fund. You want to select only one of the following tech stocks to add into your current portfolio: Appscale, Bitwise, and Carbivore. All three stocks are similar along many metrics. They are all in the technology space and have been growing very fast over the past few years. However, it is hard to get all the information for those three stocks, and so far you have collected only the following relevant information to help you make the decision: Appscale is a tech firm that focuses on developing and integrating mobile apps. Reading through analyst reports and based on your own judgement, you think the cost of equity for Appscale is 12%. Appscale estimated earnings per share next year are $10. It pays all its earnings as dividends. Bitwise is a fintech company that is involved in Bitcoin and blockchain technology. Currently, Bitwise stock is trading at $100/share, with estimated earnings next year of $10/share. You read from their management disclosure and financial report that Bitwise retains 40% of their earnings for investments. Its reinvestment rate of return is 10%. Carbivore is a biotech firm that promotes and advocates sustainable food choices. The one period holding return is 10%.

What is the current price of Appscale?

a. $120/share
b. $83/share
c. Not enough information

What is the coupon rate for a bond with 3 years until maturity, a price of $1,053.46, and a yield to maturity of 6%? Interest is paid annually.