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Cash Crunched Company (CCC) purchases computer parts from its suppliers 2/10, net 60. However, CCC routinely stretches accounts payable 10 days beyond the due date.
- Cash Crunched Company (CCC) purchases computer parts from its suppliers 2/10, net 60. However, CCC routinely stretches accounts payable 10 days beyond the due date. What is the effective annual cost of not taking the trade discount? How much does the account stretching reduce the cost of not taking the trade discount?
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley Eakins
6th Edition
0321374215, 9780321374219
