Finance

posted by .

Carnation needs to buy a $12,500 part the part company is offering cash discount terms of 4/10, n30. Carnation has a tight cash flow, wants to discount a 180 day note dated February 12 with a maturity value of $10,300. Bank offers a discount rate of 6%. Should carnation discount the note today, July 20, in order to get money needed for the cash discount? what is the amount of savings or loss?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Discount Notes

    On september 5, sheffield company discounted at Sunshine bank a 9000.00 (Maturity Value), 120-day note dated June 5, Shunshine's discount rate was 9% What proceeds did sheffield company receive
  2. Discount Notes

    On september 5, sheffield company discounted at Sunshine bank a 9000.00 (Maturity Value), 120-day note dated June 5, Shunshine's discount rate was 9% What proceeds did sheffield company receive
  3. Discount Note

    On September 5, Sheffield company discounted at sunshine bank a 9000.00 Maturity value, 120-day note dated June 5, shushines discount rate was 9%. What proceeds did sheffield company receive?
  4. FINANCE

    Tim recently invested $3,500 in a project that is promising to return 10.75 percent per year. The cash flows are expected to be as follows: End of Cash Year Flow 1 $750 2 800 3 ?
  5. finance

    John Keene recently invested $3,500 in a project that is promising to return 10.75 percent per year. The cash flows are expected to be as follows: End of Cash Year Flow 1 $750 2 800 3 ?
  6. finance

    Assume the proceeds from the loan with the compensating balance requirement will be used to take cash discounts. Disregard part b about installment payments and use the loan cost from part a. If the terms of the cash discount are 1.5/10, …
  7. Accounting

    can somebody please explain to me how to do this problem: Cruise Industries purchased $10,800 of merchandise on February 1, 2007, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $2,500 (gross price …
  8. Finance

    Can anyone explain to me how to use this formula?
  9. Finance

    1. The present value of a cash flow stream is $11,958.20. Using a discount rate of 12% what would be the missing cash flow in year 2?
  10. business math

    10. Simms Trucking Company received an invoice showing 20 tires at $99.00 each, 16 tires at $120.00 each, and 12 tires at $150.00 each. Shipping terms are FOB shipping point. Freight is $350.00; trade discount is 12/4; and a cash discount …

More Similar Questions