Schubach Ranch Supply offers its credit customers a two percent discount if they pay within ten days. This discount is referred to as a ____ discount.

A proposed project has fixed costs of $42,106 per year. The operating cash flow at 12,000 units is $56,900. Ignore taxes. What will be the new degree of operating leverage if the number of units sold rises to 12,600?

You purchased a stock at a price of $61.45. The stock paid a dividend of $1.67 per share and the stock price at the end of the year is $55.01. What are your capital gains on this investment?

Carnival Sweets expects to sell $135,900 of toys in December, $64,700 in January, $74,400 in February, and $56,800 in March. The wholesale cost is 58 percent of the retail price. The receivables period is 30 days, the payables period is 60 days, and all inventory is purchased one month prior to selling it. What is the accounts payable balance at the end of February? Assume a year has 360 days.

Stoney Brooke, Incorporated, has sales of $1,060,000 and cost of goods sold of $892,500. The firm had a beginning inventory of $45,000 and an ending inventory of $60,000. What is the length of the inventory period? Assume 365 days per year.

You’ve observed the following returns on Pryor Farm Produce stock over the past five years: 8 percent, −5 percent, 16 percent, 12 percent, and 8 percent. What is the variance of these returns?

Black Guard Security has annual sales of $355,000 and a collection period of 19.93 days. What is the company’s average balance in accounts receivable? Assume 365 days per year.

What is the standard deviation of the returns on a $30,000 portfolio that consists of Stocks S and T? Stock S is valued at $18,000. State of Economy Probability of State of Economy Rate of Return if State Occurs Stock S Stock T Boom .05 .11 .09 Normal .85 .08 .07 Bust .10 −.05 .04

Wholesome Breads uses specialized ovens to bake its bread. One oven costs $490,000 and lasts 15 years before it needs to be replaced. The annual operating cost per oven is $18,000. If the required rate of return is 17 percent, what is the equivalent annual cost of an oven?

GPR, Incorporated, has an inventory turnover of 18.96 times, a payables turnover of 11.19 times, and a receivables turnover of 8.26 times. What is the length of the company’s cash cycle? Assume 365 days per year.