Nexora Technologies purchases $3,200,000 in goods annually from its sole supplier under credit terms of 2/10, net 45. If the company pays on day 45 (past the discount window), and does not take the 2% discount, what is the effective annual cost of not taking the discount? (Assume a 365-day year.)

Nexora Technologies purchases $3,200,000 in goods annually from its sole supplier under credit terms of 2/10, net 45. If the company pays on day 45 (past the discount window), and does not take the 2% discount, what is the effective annual cost of not taking the discount? (Assume a 365-day year.)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 8P: If a firm buys on terms of 3/15, net 45, but actually pays on the 20th day and still takes the...

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What is the effective annual cost of not taking the discount for this financial accounting question?

Nexora Technologies purchases $3,200,000 in goods annually from its sole
supplier under credit terms of 2/10, net 45.
If the company pays on day 45 (past the discount window), and does not
take the 2% discount, what is the effective annual cost of not taking the
discount?
(Assume a 365-day year.)

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