Fairview Clinic buys $620,000 in medical supplies each year (at gross prices) from its major supplier, Consolidated Supplies, which offers the clinic terms of 6/10, net 30. What is Fairview Clinic's costly trade credit? (365 days in a year) A. $13,194 B. $39,583 C. $32,986 D. $26,389 E. $22,431
Fairview Clinic buys $620,000 in medical supplies each year (at gross prices) from its major supplier, Consolidated Supplies, which offers the clinic terms of 6/10, net 30. What is Fairview Clinic's costly trade credit? (365 days in a year) A. $13,194 B. $39,583 C. $32,986 D. $26,389 E. $22,431
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 6P
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Cost accounting problem
![Fairview Clinic buys $620,000 in medical supplies each year (at
gross prices) from its major supplier, Consolidated Supplies,
which offers the clinic terms of 6/10, net 30.
What is Fairview Clinic's costly trade credit? (365 days in a
year)
A. $13,194
B. $39,583
C. $32,986
D. $26,389
E. $22,431](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d5a0418-47b1-4852-a6b1-6d1614cc5d44%2F5171e3c5-6321-4e55-a1af-a67b3bd88c62%2Fu67uqua_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Fairview Clinic buys $620,000 in medical supplies each year (at
gross prices) from its major supplier, Consolidated Supplies,
which offers the clinic terms of 6/10, net 30.
What is Fairview Clinic's costly trade credit? (365 days in a
year)
A. $13,194
B. $39,583
C. $32,986
D. $26,389
E. $22,431
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