=+Jared: Allison, I’ve got a question about this recent balance sheet.

Allison: Sure, what’s your question?

Jared: Well, as you know, I’m applying for a bank loan to finance our new store in Winterville, and I noticed that the accounts payable are listed as $85,000.

Allison: Thats right. Approximately $78,000 ofthat represents amounts due our suppliers, and the remainder is miscellaneous payables to creditors for utilities, office equipment, supplies, etc.

Jared: That’s what I thought. But as you know, we normally receive a 2% discount from our sup¬

pliers for earlier payment, and we always try to take the discount.

Allison: That’s right. I can’t remember the last time we missed a discount.

Jared: Well, in that case, it seems to me the accounts payable should be listed minus the 2% dis¬

count. Let’s list the accounts payable due suppliers as $76,440, rather than $78,000. Every little bit helps. You never know. It might make the difference between getting the loan and not.