Problem:
Grunewald Industries sells on terms of 2/10, net 40. Gross Sales last year were $4,562,500, and accounts receivable averaged $437,500. Half of Grunewald's customers paid on the 10th and took discounts. What are the nominal and effective costs of trade credit to Grunewalds's non discount customers? (Hint: Calculate sales/day based on a 365-day year;then get average receivables of discount customers;then find the DSO for the non discount customers.)