If Bernie, From above, is given terms oF 4/ 15, n/ 30, and he pays by day 15.

a. How much will he pay the manuFacturer For the order of 110 bikes? (5 points)

b. For how much will the manufacturer credit Bernies account?

(5 points)

c. If Bernie has a cash flow problem and waits until day 30 to pay the manufacturer, what is his

effective cost of Financing For the year? (5 points)

d.

Are cash terms better for the buyer or seller? (10 points)