Annual credit sales of Nadak Co. total $340 million. The firm gives a 2% cash discount fort payment within 10 days of the invoice date: 90% of Nadak's accounts receivable are paid within the discount period.
What is the total amount of cash discounts allowed in a year?
Calculate the approximate annual rate of return on investment that Nadak Co. cash discount terms represent to customers who take the discount.© BrainMass Inc. brainmass.com June 4, 2020, 12:06 am ad1c9bdddf
The solution computes total cash discounts allowed; ROI calculation for discounts given.