Calculate the Last Day of Discount Period and End of Credit

question 106

Short Answer

Calculate the Last Day of Discount Period and End of Credit Period based on the information given below.
$$\begin{array} { | l | l | l | l | l | } \hline\text { Date of } & \text { Date Goods } & & \text { Last Day of } & \text { End of Credit } \\ \text { Invoice } & \text { Received } & \text { Terms } & \text { Discount Period } & \text { Period } \\\hline \text { Oct 7 } & & 2 / 10 , n / 30 & \text { (A) } & \text { (B) } \\\hline \text { June 12 } & & 2 / 10 , \text { EOM } & \text { (C) } & \text { (D) } \\\hline \text { July 29 } & & 2 / 10 , \text { EOM } & \text { (E) } & \text { (F) } \\\hline \text { March 8 } & \text { July 2 } & 2 / 10 , n / 30 , \text { ROG } & \text { (G) } & \text { (H) } \\\hline\end{array}$$

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Definitions:

General Partnership

A business arrangement where two or more individuals share ownership, as well as the profits, liabilities, and management duties.

Hedge Funds

Hedge funds are investment funds that employ various strategies to earn active returns for their investors, often engaging in leveraged, long, short, and derivative positions.

Private Equity Funds

Investment funds that gather capital from wealthy individuals or institutions to invest in buying and reorganizing private companies.

Separation Theorem

States that a firm’s investment decisions should be separate from the investment preferences of its investors.