Cost of not taking a cash discount %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Regis Clothiers can borrow from its bank at 18 percent to take a cash discount. The terms of the cash discount are 3/22, net 40.
a. Compute the cost of not taking the cash discount.
Note: Use a 360-day year. Do not round intermediate calculations. Input your final answer as a percent rounded to 2 decimal
places.
Cost of not taking a cash discount
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