What is cost of trade credit to customers who take discount

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Receivables investment

McDowell Industries sells on terms of 3/10, net 30. Total sales for the year are $1,086,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 56 days after their purchases. Assume 365 days in year for your calculations. sales outstanding=37.6 days and average amount of receivables=111872.87

What is the percentage cost of trade credit to customers who take the discount? Round your answers to two decimal places.

Reference no: EM13849927

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