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A firm purchases $4,562,500 in goods overa 1 year period from its sole supplier. the supplier offers trade credit under the following terms: 2/15, net
A firm purchases $4,562,500 in goods overa 1 year period from its sole supplier. the supplier offers trade credit under the following terms: 2/15, net 50 days. Davis finally chooses to pay on time (pay in the 50th day) but not to take the discount. weassume 365 days per year. what is the average level of the company's free trade credit?
a) $187,500
b) $437,000
c) $625,000
d)$4,562,500
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