Hello tutor need answer the accounting question Company X sells on a 2/15, net 90, basis. Company Ybuys goods with an invoice of $1,000.Requirements:(a) How much can company Y deduct from the bill ifit pays on day 15?(b) How many extra days of credit can company Yreceive if it passes up the cash discount?(c) What is the effective annual rate of interest if Ypays on the due date rather than day 15?

a. If it pays on day 15, which is within the discount period, it can get the 2% discount.1,000 x 2%…

Answered: Company X sells on a 2/15, net 90,…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 17P

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