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Melori Inc. has a current cash balance of $5,000. They have accounts receivable of $3,500, accounts payable of $1,350, and an inventory balance of $4,250.
Melori Inc. has a current cash balance of $5,000. They have accounts receivable of $3,500, accounts payable of $1,350, and an inventory balance of $4,250. Their bank requires them to have a $5,000 cash balance at all times, but they would like to take advantage of a 3% cash discount on their accounts payable. What should they do? Select answer from the options below Unless their line of credit interest rate is less than 3%, they should wait to pay the payables. Take a short-term loan from a line of credit to pay the payables and take advantage of the discount. Wait to pay the payables until they receive payments from some of their customers. Pay the invoices, take advantage of the discount, and hope the bank doesn't notice
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