Determining the nominal annual cost


Problem:

Durham Cement, Inc. buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 60 days after the invoice date. Net purchases amount to $720,000 per year.

Required:

Question: What is the nominal annual cost of its non-free trade credit?

Note: Please provide through step by step calculations.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Determining the nominal annual cost
Reference No:- TGS0889809

Expected delivery within 24 Hours