Slipshod Machine Tool Co. owes $55,000 to one of its suppliers. The supplier has offered a trade

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Slipshod Machine Tool Co. owes $55,000 to one of its suppliers. The supplier has offered a trade discount of 2/10 net 30. Slipshod can borrow the funds from one of three banks: First City Bank will loan the funds for 20 days at a cost of $500; Upstart Bank offers a discounted loan for 20 days at a cost of $375; State Bank offers a loan with a compensating balance of 10% for 20 days with a cost of $400. What is the cost of failing to take the cash discount?

Posted Date: May 11, 2024 05:08 AM

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Slipshod Machine Tool Co. owes $55,000 to one of its suppliers. The supplier has offered a trade

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