Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Company X sells on a 1/30, net 60 basis. Customer Y buys Xs goods invoiced at $100,000. Commercial Banks deposit rate is 3% per year.
Company X sells on a 1/30, net 60 basis. Customer Y buys Xs goods invoiced at $100,000. Commercial Banks deposit rate is 3% per year.
Based on the information above, please choose the most convincing statement.
Answer: [ A ]
a.It is favorable for Y to make a full payment to X within 30 days
b.It is favorable for Y to delay payment up to 60 days
c.Y should pay interest if overdue 30 days
d.It depends on storing cost of inventory
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started