Question
B Company buys goods at the term of 3/10, n/45. Alternatively, B Co Company can borrow money at the rate of 3% a month. What
B Company buys goods at the term of 3/10, n/45. Alternatively, B Co Company can borrow money at the rate of 3% a month. What is optimal for the Company?
Forgo the discount and pay on the 45th day
Borrow from the bank, and pay on the 45th day
Forgo the discount and pay on the 30th day
Borrow from the bank, pay in 10 days and take the discount
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Accounting What The Numbers Mean
Authors: David H. Marshall, Wayne William Mcmanus, Daniel Marshall Viele, Mcmanus Marshall, Daniel F. Viele
10th Edition
1259060705, 978-1259060700
