1) Trade credit terms of 2/10, net 90 are availabe. Calculate the cost of trade credit when payment is made on the net due date using EAR (also known as APY). Use a 360 day year.
2) The LD Tv Corportion had taxable income of the $815,000 this past year. Its cost of goods sold was $0.8 million and its operating expenses were $300,000. Interest expenses on oustanding debts were $100,000 and the company paid $30,000 in preferred stock dividends. The company recevied interest income of $15,000. Determine LD TV's sales.