1. Credit terms Purchases made on credit are due in full by the end of the billing period. Many firms extend a discount for payment made in the first part of the billing period. The original invoice contains a type of shorthand notation that explains the credit terms that apply. (Note: Assume a 365 day year.) a Write the shorthand expression of credit terms for each of the following: Cash Cash discount Beginning of Credit Period credit discount period 1% 15 days 45 days date of invoice 10 days 30 days end of month 2% 7 days 28 days date of invoice 1% 10 days 60 days end of month b. For each of the sets of credit terms in part a cate the number of days until full payment is due for invoices Gated March 12 c. For each of the sets of credit terms, calculate the cost of giving up the cash discount d. If the firm's cost of short-term financing what would you recommend in regard to taking the discount of giving up in each 2. Personal finance: Borrow or pay cash for an asset Boband Carol G bbs are set to move into their first apartment. The visited Furniture 1. Credit terms Purchases made on credit are due in full by the end of the billing period. Many firms extend a discount for payment made in the first part of the billing period. The original invoice contains a type of shorthand notation that explains the credit terms that apply. (Note: Assume a 365-day year.) a. Write the shorthand expression of credit terms for each of the following: Cash Cash discount Beginning of credit Credit Period discount period period 1% 15 days 45 days date of invoice 10 days 30 days end of month 7 days 28 days date of invoice 1% 10 days 60 days end of month b. For each of the sets of credit terms in part a, calculate the number of days until full payment is due for invoices dated March 12. C. For each of the sets of credit terms, calculate the cost of giving up the 2% 2% cash discount d. If the firm's cost of short-term financing is 8%, what would you recommend in regard to taking the discount or giving it up in each case