Wontaby Ltd. Is extending its credit terms from 30 to 45 days. Sales are expected to increase from $4.74 million to $5.84 million as aresult. Wontaby finances short-term assets at the bank at a cost of 10 percent annually. Calculate the additional annual financing costof this change in credit terms. (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to thenearest whole dollar. Enter answer in whole dollar not in million.)Annual financing cost

The annual financing cost, also known as the annual cost of financing or annual finance charge, is…

Wontaby Ltd. Is extending its credit terms from 30 to 45 days. Sales are expected to increase from result. Wontaby finances short-term assets at the bank at a cost of 10 percent annually. Calculate of this change in credit terms. (Use 365 days in a year. Do not round intermediate calculations. nearest whole dollar. Enter answer in whole dollar not in million.)

Wontaby Ltd. Is extending its credit terms from 30 to 45 days. Sales are expected to increase from result. Wontaby finances short-term assets at the bank at a cost of 10 percent annually. Calculate of this change in credit terms. (Use 365 days in a year. Do not round intermediate calculations. nearest whole dollar. Enter answer in whole dollar not in million.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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