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Please help with part B. Part A is correct. Annual credit sales of Nadak Co. total $347.1 million. The firm gives a 2.75% cash discount
Please help with part B. Part A is correct.
Annual credit sales of Nadak Co. total $347.1 million. The firm gives a 2.75% cash discount for payment within 10 days of the invoice date; 75% of Nadak's accounts receivable are paid within the discount period. Required: a. What is the total amount of cash discounts allowed in a year? (Enter your answer in millions rounded to 2 decimal places.) Answer is complete and correct. Total amount 7.16 million b. Calculate the approximate annual rate of return on investment that Nadak Co.'s cash discount terms represent to customers who take the discount. (Assume a credit period of 30 days and 360-days year). (Round intermediate calculations to 2 decimal places. Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).) X Answer is complete but not entirely correct. ROI 38.5 %Step by Step Solution
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