Question
Edison Construction buys on terms of 2/15, net 60 days. It does not take discounts, and it typically pays on time, 60 days after the
Edison Construction buys on terms of 2/15, net 60 days. It does not take discounts, and it typically pays on time, 60 days after the invoice date. Net purchases amount to $675,000 per year. On average,how much free trade credit does the firm receive during the year? (Assume a 365-day year, and note that purchases are net of discounts.)
| A. | $43,151 | |
| B. | $18,493 | |
| C. | $27,740 | |
| D. | $61,644 |
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Advanced Finance
Authors: Michael Fardon
1st Edition
1872962319, 1872962173, 978-1872962313, 978-1872962177
