Question
You place an order for 350 units of inventory at a unit price of $140. The supplier offers terms of 1 / 10, net 30.
You place an order for 350 units of inventory at a unit price of $140. The supplier offers terms of 1 / 10, net 30.
How long do you have to pay before the account is overdue?
If you take the full period, how much should you remit?
What is the discount being offered?
How quickly must you pay to get the discount?
If you do take the discount, how much should you remit?
If you don't take the discount, how much interest are you paying implicitly?
How many days' credit are you receiving?
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
