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Question
Dixie Tours Inc. buys on terms of 2/15, net 30. It does not take discounts, and it typically pays 35 days after the invoice date. Net purchases amount to $720,000 per year. What is the approximate percentage cost of its non-free trade credit?
a. 17.2%
b. 23.6%
c. 26.1%
d. 7%
e. 50.6%
Answer
This answer is hidden. It contains 11 characters.
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