(Solved Homework): 1) BBC has an average accounts payable balance of \$500,000. Its average daily cost of goods sold is \$15,000, and it receives terms of 2/1…

1) BBC has an average accounts payable balance of \$500,000. Its average daily cost of goods sold is \$15,000, and it receives terms of 2/15, net 35, from its suppliers. BBC chooses to forgo the discount. Is the firm managing its accounts payable well?

2) Max Corp. has an average accounts payable balance of \$225,000. Its average daily cost of goods sold is \$10,000, and it receives terms of 1/15, net 40, from its suppliers. Max chooses to forgo the discount. Is the firm managing its accounts payable well?

Don't use plagiarized sources. Get Your Custom Essay on
(Solved Homework): 1) BBC has an average accounts payable balance of \$500,000. Its average daily cost of goods sold is \$15,000, and it receives terms of 2/1…
Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT!

3) SportsMart sells 500,000 baseballs annually. The baseballs cost SportsMart \$24 per dozen (\$2.00 each). Annual inventory carrying costs are 25% of inventory value and the cost of placing and receiving an order are \$78. Determine the:

A) Economic Order Quantity
B) Total annual inventory costs of this policy
C) Optimal ordering frequency

4) Nike sells 1,000,000 basketballs annually. The baseballs cost Nike \$180 per dozen (\$15.00 each). Annual inventory carrying costs are 20% of inventory value and the cost of placing and receiving an order are \$150. Determine the:

A) Economic Order Quantity
B) Total annual inventory costs of this policy
C) Optimal ordering frequency

Solution 1.

BBC’s account payable ratio is approx. 500,000/15,000 = 33 days which means the company is paying the account payable almost near the due date.

As they are not paying the account payable within 15 days to avail 2% discount it means they are ending up paying more cash to the account payables.

So it can be said that they are not managing there accounts payable well as paying within 15 days can help them in getting more discounts and free more cash.

Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.