41.) Hayes Corp. purchases $365,000 in goods over a 1-year period from its sole supplier....
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Finance
41.)
Hayes Corp. purchases $365,000 in goods over a 1-year period from its sole supplier. The supplier offers trade credit under the following terms: 2/10, net 30 days. Hayes finally chooses to pay on time (pay in the 30th day) but not to take the discount. We assume 365 days per year. What is the average level of the companys free trade credit?
$10,000
$20,000
$30,000
$365,000
44.)based on the information from Question 41, what is the nominal annual cost of the firms costly trade credit?
19.6%
22.3%
23.5%
37.2%
45.)
Based on the information from Question 41, what is the effective annual cost of the firms costly trade credit?
29.6%
37.2%
39.5%
44.6%
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