Question
Little Kimi Clothiers can borrow from its bank at 12 percent to take a cash discount. The terms of the cash discount are 3/17 net
Little Kimi Clothiers can borrow from its bank at 12 percent to take a cash discount. The terms of the cash discount are 3/17 net 90.
a. Compute the cost of not taking the cash discount. (Use 365 days in a year. Do not round the intermediate calculations. Round the final answer to 2 decimal places.)
Cost of not taking a cash discount %
b. Should the firm borrow the funds? Yes or No
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Financial Accounting Tools For Business Decision-Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
2nd Canadian Edition
0470833378, 978-0470833377
