Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 4/10, net 65. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its non-free trade credit? (Assume a 365-day year.)   a. 21.98% b. 27.65% c. 29.49% d. 31.12% e. 28.46%

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Q: O 14.26% 10 20% Nocci O 1120%

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A: Solution:- As given in the question, Firm X has an average inventory of $640,000 and sales of…

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A: a)Commercial Paper is a Short Term Debt Security issued by a large and reputed Company in Money…

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A: 1) Days Sales Outstanding = % of pay  ×  Days =30%×10 + 70%× 30 =24 days

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A: Commercial Paper = 106Face Value = $1.3millionProceeds = $1285230Period = 365

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A: Here, Hedging Amount in SFr    70,000,000.00Days of Sales Receivables180Spot Rate…

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A: Days outstanding can be calculated by weighted average days in sales.

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A: Credit management is considered to be important part. Discount are offered in order to receive…

Trade Credit

Answer- a- Before Shipping of goods