[rafferty85]

Here is the basic info of the question: 2 vendors and their financing:

vendor 1) 25k monthly purchases.. terms are 2/10 net 30

vendor 2) 50k monthly purchases…. terms are 5/10 net 90

Becker says the weighted average is 28

wiley says the weighted average is 25.2

note: this question is CMA adapted…

anyone know what answer is correct? Thanks!

FAR: 81
REG: 75
BEC: 87
AUD: 90

[rafferty85]

bump

FAR: 81
REG: 75
BEC: 87
AUD: 90

[mmcgrad1]

Are you talking about the weighted average of days for collection of receivables?

Edit: Or are you talking about opportunity cost?

NIU CPA Review Correspondence is awesome!

I passed all four sections on the first attempt

[Wiley CPA Exam Review]

@rafferty85 do you have the Wiley Question ID (if online Test Bank) or book (year/title/page) so we can check into this?

[rafferty85]

2012 Wiley CPA BEC Book:

Module 44, question 70. (page 244)

mmcgrad1: the question is asking for weighted average annual interest rate for the trade credit for the two vendors

FAR: 81
REG: 75
BEC: 87
AUD: 90

[Wiley CPA Exam Review]

Wiley author Ray Whittington checked and 25.2 was the answer that the CMA released which is what Wiley used. He also noted that he believes the correct answer is indeed 25.2%.

[rafferty85]

Huh… well someone owes me a refund.. either Becker owes me 3k or Wiley owes me $40… I will see what Becker says.. thanks Wiley!

FAR: 81
REG: 75
BEC: 87
AUD: 90

[Author]

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