The following data available for Delicious Catering Ltd.

Account	Beginning balance	Ending Balance	Use/source of cash
Accounts payable	47,800	55,500
Inventory	22,600	29,700
Long term debts	85,500	145,600
Common stock	120,500	100,000

Other information: The company just placed an order for 9,000 pieces of pizza bases at a price of $0.5/unit. The supplier offers the credit terms of 1.5/10, net 40.

Required:

1. Calculate the net cash and identify the source of cash or the use of cash for each account by filling into the column next to the ending balance

ANSWER a):

2. What is the discount being offered by the supplier to Delicious Catering Ltd.? How quickly must the company pay to get the discount? If the company takes the discount, how much should they pay?

ANSWER b):