Fil Development buys on terms of 2/15, net 60 days. It does not take discounts, and it typically pays on time, 60 days after the invoice date. Net purchases amount to P550,000 per year. On average, what is the dollar amount of total trade credit (costly + free) the firm receives during the year, i.e., what are its average accounts payable? (Assume a 365-day year, and note that purchases are net of discounts.) O P 90,411

Fil Development buys on terms of 2/15, net 60 days. It does not take discounts, and it typically pays on time, 60 days after the invoice date. Net purchases amount to P550,000 per year. On average, what is the dollar amount of total trade credit (costly + free) the firm receives during the year, i.e., what are its average accounts payable? (Assume a 365-day year, and note that purchases are net of discounts.) O P 90,411

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Fil Development buys on terms of
2/15, net 60 days. It does not take
discounts, and it typically pays on
time, 60 days after the invoice date.
Net purchases amount to P550,000
per year. On average, what is the
dollar amount of total trade credit
(costly + free) the firm receives
during the year, i.e., what are its
average accounts payable? (Assume
a 365-day year, and note that
purchases are net of discounts.)
P 90,411
O P109,895
P 99,678
O P 94,932
P104,662

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