Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. cost of trade credit a large retailer obtains merc

Cost of Trade Credit A large retailer obtains merchandise under the credit terms of 1/20,...

90.2K

Verified Solution

Question

Finance

Cost of Trade Credit

A large retailer obtains merchandise under the credit terms of 1/20, net 30, but routinely takes 60 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's effective cost of trade credit? Assume a 365-day year. Do not round intermediate calculations. Round your answer to two decimal places.

%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Geom Unit 48 CFA 22 23 Sadat Nazhat Use the right circular cone to Which...

Geometry
Q

Students in the senior capstone course (N = 36) at University Uptight took the Political Science...

Statistics
Q

A mass of 100g strikes the wall with speed 5m s at an angle as...

Physics
Q

Is x 0 a valid potential solution to the equation log x 2 log x...

Basic Math
Q

Suppose that the mean systolic blood pressure for women over age seventy is 134 mmHg...

Basic Math
Q

4 tricky and challenging questions about( managerial accounting )- finding raw materials ( beg ,...

Accounting
Q

PSA 5-4 Calculate SUTA Tax For each circumstance, calculate the SUTA tax owed...

Accounting
Q

At the start of your onsite visit at your client, they provide you with a...

Accounting
Q

Santana Rey expects second quarter 2022 net income of Business Solutions's line of computer furniture...

Accounting
Q

Tharp Company operates a small factory in which it manufactures two products: C and D....

Accounting
Q

1. The small business deduction is only available to Canadian Controlled Private Corporations (CCPCs). With...

Accounting
Q

Chill SpringsChill Springs produces premium bottled water. In the Bottling? Department, workers bottle the filtered...

Accounting