Indicate the missing amount for each letter. Case 1 2 Direct materials used $9,890 $ (g) Direct labor 5,670 8,450 Manufacturing overhead 8,640 5,100 Total manufacturing costs (a) 16,910 Beginning work in process inventory 1,370 (h) Ending work in process inventory (b) 3,750 Sales revenue 25,110 (i) Sales discounts 2,770 1,990 Cost of goods manufactured 17,830 22,400 Beginning finished goods inventory (c) 3,590 Goods available for sale 22,740 (j) Cost of goods sold (d) (k) Ending finished goods inventory 4,200 3,370 Gross profit (e) 7,340 Operating expenses 2,810 (l) Net income (f) 5,580

Neveready Flashlights Inc. needs $345,000 to take a cash discount of 2/11, net 76. A banker will loan the money for 65 days at an interest cost of $12,100.

a. What is the effective rate on the bank loan? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

b. How much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 76 days instead of 11 days? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

c. Should the firm borrow the money to take the discount?

No

Yes

d. If the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $345,000?

e-1. What would be the effective interest rate in part d if the interest charge for 65 days were $11,400? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

e-2. Should the firm borrow with the 20 percent compensating balance requirement? (The firm has no funds to count against the compensating balance requirement.)

Yes

No