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A supplier is offering a 3% cash discount for payment within 14 days. Alternatively, they will allow a maximum of 40 days credit. The business
A supplier is offering a 3% cash discount for payment within 14 days. Alternatively, they will allow a maximum of 40 days credit. The business is expecting to be short of cash but an overdraft facility is available from the bank at an annual interest rate of 14% Would you advise the firm to pay early to receive the discount?
| A supplier is offering a 3% cash discount for payment within 14 days. Alternatively, they will allow a maximum of 40 days credit. | |||||||||
| The business is expecting to be short of cash but an overdraft facility is available from the bank at an annual interest rate of 14% | |||||||||
| Would you advise the firm to pay early to receive the discount? |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
