Homework Answers
| Answer | |
| a. Total amount of cash discounts allowed in a year: | = Annual credit sales * 80% * 1.75% |
| = 336.6 * 80% * 1.75% | |
| = 4.712 Million (Approx) | |
| b. Annual rate of return on investment: | = ((1.75/98.25) * 360) / (30-10) |
| = 32.1% (Approx) | |
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