4. Cost of trade credit Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which affect the cost of asset of sale for the buyer as well as the seller. Consider this case: Green Moose Industries buys on terms of 3/10, net 60 from its chief supplier: If Green Moose recelves an invoice for \$1,545.78, what would be the true price of this involce? (Note: Round all intermediate calculations to four dedmal places, and your final answer to two decimal places.) $1,349.47$1,274.50$1,499.41$1,574.38 The nominal annual cost of the trade credit extended by the supplier is assuming a 365-day year. (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.) Suppose Green Moose does not take advantage of the discount and then chooses to pay its supplier late-so that on average, Green Moose will pay its supplier on the 65 th day after the sale. As a result, Green Moose can decrease its nominal cost of trade credit by by paying late. (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.) Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which affect the cost of asset of sale for the buyer as well as the selier. Contider this case: Green Moose industries buys on terms of 3/10, net 60 from its chief supplier. If Green Moose receives an involice for $1,545.78, what would be the true price of this invoice? (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.) \begin{tabular}{l|l|} \hline 1,349.47 & 22.56% \\ 51,274.50 & 22.11% \\ \hline 51,499.41 & 23.46% \\ 51,574.38 & 27.97% \\ \hline \end{tabular} The nominal annual cost of the trade credit extended by the suppler is , assuming a 365-day year, (Note: Round all intermediate calculations to four decimal places, and your fnal answer to two decimal places.) 51,499,41 51,574,38 The nominal annual cost of the trade credit extended by the supplier is calculations to four decimal places, and your final answer to two decimal places.) Suppose Green Moose does not take advantage of the discount and then chooses to pay its supplier late-so that supplier on the 65 th day after the sale. As a result, Green Moose can decrease its nominal cost of trade credit by by paying late. (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.)
