Q1) Mavericks Cosmetics buys $3,798,218 of product (net of discounts) on terms of 5/10, net 60, and it currently pays on
Posted: Fri Jul 01, 2022 7:48 am
Q1) Mavericks Cosmetics buys $3,798,218 of product (net ofdiscounts) on terms of 5/10, net 60, and it currently pays on the10th day and takes discounts. Mavericks plans to expand, andthis will require additional financing. If Mavericks decidesto forego discounts, what would the effective percentage cost ofits trade credit be, based on a 365-day year?
Answer in % terms to 2 decimal places.
Q2) Mahrouq Technologies buys $12,726,823 of materials(net of discounts) on terms of 1/30, net 60, and it currently payswithin 30 days and takes discounts. Mahrouq plans to expand,and this will require additional financing. If Mahrouqdecides to forego discounts and thus to obtain additional creditfrom its suppliers, calculate the nominal cost of that credit.
Answer in % terms to 2 decimal places (no % sign).
Answer in % terms to 2 decimal places.
Q2) Mahrouq Technologies buys $12,726,823 of materials(net of discounts) on terms of 1/30, net 60, and it currently payswithin 30 days and takes discounts. Mahrouq plans to expand,and this will require additional financing. If Mahrouqdecides to forego discounts and thus to obtain additional creditfrom its suppliers, calculate the nominal cost of that credit.
Answer in % terms to 2 decimal places (no % sign).