FP Co. buys on terms 2/10, net 30, but generally does not pay until the 40 days after invoice date. Its purchases total P2,160,000 per year. Assuming 360 days a year, the amount of "non-free" trade credit used by the firm on the average each year is? Can you please show me the solution and a little bit of explanation so I could see more to it? Thank you so much in advance!
FP Co. buys on terms 2/10, net 30, but generally does not pay until the 40 days after invoice date. Its purchases total P2,160,000 per year. Assuming 360 days a year, the amount of "non-free" trade credit used by the firm on the average each year is? Can you please show me the solution and a little bit of explanation so I could see more to it? Thank you so much in advance!
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 8P: If a firm buys on terms of 3/15, net 45, but actually pays on the 20th day and still takes the...
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FP Co. buys on terms 2/10, net 30, but generally does not pay until the 40 days after invoice date. Its purchases total P2,160,000 per year. Assuming 360 days a year, the amount of "non-free" trade credit used by the firm on the average each year is?
Can you please show me the solution and a little bit of explanation so I could see more to it? Thank you so much in advance!
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