# Bill Norman comes to you for advice. He has just purchased a large amount of Inventory...

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Bill Norman comes to you for advice. He has just purchased a large amount of Inventory with the terms 2 20.n/45. The amount of the involce is $330,000. He is currently short of cash but has decent credit He can borrow the money needed to settle the account payable at an annual interest rate of 9 percent Bill is sure he will have the necessary cash by the due date of the invoice but not by the last day of the discount period Required a. Convert the discount rate into an annual interest rate (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places. e. 2345 should be entered as 23.45) b. Make a recommendation regarding whether Bill should borrow the mery and wry off the account payable within the discount periodi A Annual tale Shout Borrow the money and pay of the account payable within the discount petio Lopez Sales Company had the following balances in its accounts on January 1, Year 2: Cash Merchandise Inventory Land Common Stock Retained Earnings$ 65,000 45,000 105,000 85,000 130,000 Lopez experienced the following events during Year 2: 1. Sold merchandise inventory that cost $36,000 for$76,500. 2. Sold land that cost $42,000 for$78,800. Required a. Determine the amount of gross margin recognized by Lopez. b. Determine the amount of the gain on the sale of land recognized by Lopez. a. Gross margin b. Gain on sale of land

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