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: 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 cash discount. d. If the firm's cost of short-term financing is 9.4%, what would you recommend in regard to taking the discount or giving it up in each case? a. The short-hand expression of the credit terms 1 is: 7 net EOM - (Round consistently and select from the drop-down menu.) Cash discount 1.3% Cash discount period 12 days 8 days 7 days 9 days 2.5% 1.6% 1.9% Beginning of credit period date of invoice end of month date of invoice end of month Credit period 32 days 30 days 32 days 55 days Early payment discount versus loan Joanne Germano works in an accounts payable department of a major retailer. She has attempted to convince her boss to take the discount on the 3/15 net 60 credit terms most suppliers offer, but her boss argues that giving up the 3% discount is less costly than a short-term loan at 8%. Prove to whoever is wrong that the other is correct. (Note: Assume a 365-day year.) The cost of giving up the cash discount is %. (Round to two decimal places.)