1. On July 15th, you purchased $10,000 worth of goods. The terms of the sale were 4/5, net 44. What is the effective annual rate of interest for the credit period for this sale?
2. ABC Company has annual sales of $485,748 and cost of goods sold of $198,600. The average accounts receivable balance is $74,256. How many days on average does it take the firm to collect its accounts receivable? Assume 365 days.
3. Compute the Accounts Payable (A/P) period based on the following information: Average A/P balance = $64,059 Annual Cost of Goods Sold = $430,360 Assume 365 days.