Hinkle Corporation 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 $550,000 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.)   a. $94,932   b. $109,895   c. $90,411   d. $104,662   e. $99,678

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A: Discount rate (r) = 0.02 Discount days (D) = 20 Credit term (C) = 40   Cost of trade credit = ?

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A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.