Finance Mgt Set 3

Please answer the following question based on the directions provided in each question.

The previously answered question is in RED, and the new question to answer is in GREEN.

2.

Medwig Corporation has a DSO of 33 days. The company averages $7,500 in sales each day (all customers take credit). What is the company's average accounts receivable? Round your answer to the nearest dollar.

$ 90,337,500

Medwig Corporation has a DSO of 17 days. The company averages $6,750 in sales each day (all customers take credit). What is the company's average accounts receivable? Round your answer to the nearest dollar.

$  

3.

A large retailer obtains merchandise under the credit terms of 1/10, net 40, but routinely takes 65 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's effective cost of trade credit? Assume 365 days in year for your calculations. Do not round intermediate calculations. Round your answer to two decimal places.

 %

A large retailer obtains merchandise under the credit terms of 3/10, net 40, but routinely takes 70 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's effective cost of trade credit? Assume 365 days in year for your calculations. Do not round intermediate calculations. Round your answer to two decimal places.

 %

4.

A chain of appliance stores, APP Corporation, purchases inventory with a net price of $200,000 each day. The company purchases the inventory under the credit terms of 1/15, net 35. APP always takes the discount, but takes the full 15 days to pay its bills. What is the average accounts payable for APP? Round your answer to the nearest dollar.

$ 198,000

A chain of appliance stores, APP Corporation, purchases inventory with a net price of $550,000 each day. The company purchases the inventory under the credit terms of 1/15, net 40. APP always takes the discount, but takes the full 15 days to pay its bills. What is the average accounts payable for APP? Round your answer to the nearest dollar.

$  

7.

A computer costs $390 in the United States. The same model costs 660 euros in France. If purchasing power parity holds, what is the spot exchange rate between the euro and the dollar? Do not round intermediate calculations. Round your answer to two decimal places.

$1 =  euros

(sorry I didn’t get a chance to copy the write on for this one)

A computer costs $620 in the United States. The same model costs 740 euros in France. If purchasing power parity holds, what is the spot exchange rate between the euro and the dollar? Do not round intermediate calculations. Round your answer to two decimal places.

$1 =  euros

8.

If euros sell for $1.29 (U.S.) per euro, what should dollars sell for in euros per dollar? Round your answer to two decimal places.

 Euros per dollar

0.59

0.78

12.29