Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Trade Credit
Answer- a- Before Shipping of goods
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Assume the credit terms offered to your firm by your suppliers are 4/20, net 50. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 50. (Hint: Use a 365-day year.) The cost of trade credit is%. (Rounded to two decimal places.) ...
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Transcribed Image Text:Assume the credit terms offered to your firm by your suppliers are 4/20, net 50. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 50. (Hint: Use a 365-day year.) The cost of trade credit is%. (Rounded to two decimal places.) ...
The Manana Corporation had sales of $82.3 million this year. Its accounts receivable balance averaged $2.5 million. How long, on average, does it take the firm to collect on its sales? (Hint: Use 365 days for a year.) The collection period is days. (Round to one decimal place.) ...
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Transcribed Image Text:The Manana Corporation had sales of $82.3 million this year. Its accounts receivable balance averaged $2.5 million. How long, on average, does it take the firm to collect on its sales? (Hint: Use 365 days for a year.) The collection period is days. (Round to one decimal place.) ...
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