Atlanta Cement, Inc. buys on terms of 2/15, net 30. It does not take discounts, and it typically pays 65 days after the invoice date. Net purchases amount to $720,000 per year. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year?
A. 16.83%
B. 14.90%
C. 11.17%
D. 12.51%
E. 14.60%
Answer: B
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Peter, the owner and lead accountant at a tax preparation firm, is changing the work schedule of his long-term employees for the months of March and April, the company's busiest time. He is requiring work on weekends for everyone, using the same basic schedule as last year. Peter should expect that his employees will be
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