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Thank you so much! Please answer all parts. Credit terms Purchases made on credit are due in full by the end of the billing period.
Thank you so much! Please answer all parts.
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: Data Table 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? (Click on the icon located on the top-right corner of the data table below in order to a. The short-hand expression of the credit terms 1 is: (Round consistently and select from the drop-down menu.) copy its contents into a spreadsheet.) net Beginning of credit period Cash discount period Credit period Cash discount EOM 13 days 42 days 30 days 30 days 55 days 1.1% date of invoice date of invoice 1.9% 8 days 7 days 8 days end of month date of invoice 2.4% 1.7% end of month Print Done 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: Data Table 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? (Click on the icon located on the top-right corner of the data table below in order to a. The short-hand expression of the credit terms 1 is: (Round consistently and select from the drop-down menu.) copy its contents into a spreadsheet.) net Beginning of credit period Cash discount period Credit period Cash discount EOM 13 days 42 days 30 days 30 days 55 days 1.1% date of invoice date of invoice 1.9% 8 days 7 days 8 days end of month date of invoice 2.4% 1.7% end of month Print DoneStep by Step Solution
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