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Wontaby Ltd. is extending its credit terms from 45 to 60 days. Sales are expected...

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Accounting

Wontaby Ltd. is extending its credit terms from 45 to 60 days. Sales are expected to increase from $4.89 million to $5.99 million as a result. Wontaby finances short-term assets at the bank at a cost of 12 percent annually.

Calculate the additional annual financing cost of this change in credit terms. (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to the nearest whole dollar. Enter answer in whole dollar not in million.) Annual financing cost $

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