Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which affect the cost of asset or sale for the buyer as well as the seller. Consider this case: Cold Duck Manufacturing Inc. buys on terms of 2.5/20, net 60 from its chief supplier If Cold Duck receives an invoice for $1,889.99, what would be the true price of this invoice? $1,934.88 $1,474.19 $1,842.74 $1,658.47 (Note: Assume there are 365 days in a year.) The nominal annual cost of the trade credit extended by the supplier is Cold Duck Manufacturing Inc. buys on terms of 2.5/20, net 60 from its chief supplier. If Cold Duck receives an invoice for $1,889.99, what would be the true price of this invoice? O $1,934.88 O $1,474.19 O $1,842.74 $1,658.47 The nominal annual cost of the trade credit extended by the supplier is (Note: Assume there are 365 days in a year.) The effective annual rate of interest on trade credit is Suppose Cold Duck does not take advantage of the discount and then chooses to pay its supplier tate-so that on average, Cold Duck will pay it supplier on the 65th day after the sale. As a result, Cold Duck can decrease its nominal cost of trade credit by by paying late 10. Sources of short-term financing Short-term credit, or short-term financing, is any liability that is scheduled for repayment within one year. Among the sources of short-term funds are banks, suppliers, securities firms, and insurance companies. Their securities (or obligations) can take the form of bank loans, trade credit, commerci paper, and accruals. Some types of short-term financing are easier to obtain and manage than others. Financial managers should consider the costs of the various sources of financing as part of a business's cash management strategy. The following statement refers to a source of short-term credit. Select the best term to complete the following sentence: When resources are used and the payment for those resources is delayed the result is the spontaneous creation of short-term Hansen Production Corporation is a manufacturing company. Hansen's balance sheet reflects a note payable of $100,000 due in 10 months to U.S. Bank. Which type of financing does the note represent? Accrual Bank loan Trade credit Commercial paper at