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Explain the significance of financing with accounts payable. Also, explain the rationale of taking a cash discount, such as 2/10, net/30. Additionally, determine the approximate
Explain the significance of financing with accounts payable. Also, explain the rationale of taking a cash discount, such as 2/10, net/30. Additionally, determine the approximate balance of accounts payable, if a company stretches its payables to 60 days and on average they make purchases of $50,000 per day from their vendors. Explain what the stretching accomplishes if the vendors should be paid in 30 days.
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