Johnson company experts that it will need $600000 cash for July, 2016. Possible means of financing are: (a) Establish a 1- year credit line for $600000. The bank requires a 2 percent commitment fee. The interest rate is 21 percent. Funds are needed for 30 days. (b) Fail to take a 2/10, net/40 discount on a $600000 credit purchase. (c) lssue $600000, 20percwnt commercial paper fir 30 days. Which financing strategy should be selected?

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Johnson company experts that it will need $600000 cash for July, 2016. Possible means of financing are: (a) Establish a 1- year credit line for $600000. The bank requires a 2 percent commitment fee. The interest rate is 21 percent. Funds are needed for 30 days. (b) Fail to take a 2/10, net/40 discount on a $600000 credit purchase. (c) lssue $600000, 20percwnt commercial paper fir 30 days. Which financing strategy should be selected?

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