Purchase Solution

Nominal Annual Cost

Not what you're looking for?

Ask Custom Question

Durkin Cement buys on terms of 2/15, net 30 days. It does not take discounts and it typically pays 68 days after the invoice date. Net purchases amount to $720,000 per year. What is the nominal annual cost of its non-free trade credit assuming a 365 day year.

Purchase this Solution

Solution Summary

This solution shows step-by-step calculations to determine the nominal annual cost of its non-free trade per year.

Purchase this Solution


Free BrainMass Quizzes
IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.