ABC Company's budgeted sales and budgeted cost of sales for the coming year are 14.4 million and 9 million, respectively Short-term interest rates are expected to average 15%. If the company can increase inventory turnover from its current level of 9 times per year to 12 times per year, its cost savings in the coming year is expected to be

A.37,500

B. 67,500

C. 90,000

D. 60,000

ABC Company, a retail store, is considering foregoing sales discounts in order to delay using its cash. Supplier credit terms are 2/10, net 30. Assuming a 360-day year, what is the annual cost of credit if the cash discount is not taken and ABC pays net 30?*

A. 24.0%

B. 36.0%

C. 24.5%

D. 36.7%

ABC Co. has paid out 6 million as dividends to its shareholders. The company earned 20 million. The retention ratio of ABC Co. is*

A.15%

B.70%

C.60%

D. 30%

A rm buys on terms of 2/10, net 30, but generally does not pay until 40 days after the invoice date. Its purchases total 1,080,000 per year. How much "non-free" trade credit does the rm use on average each year?*

A.90,000

B60,000

C.30,000

D.120,000