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PPG Co. buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 30 days after the invoice date. Net purchases amount to $730,000 per year. On average, how much "free" trade credit does PPG receive during the year? (Assume a 365-day year.) a. $30,000 b. $40,000 c. $50,000 d. $60,000 e. None of the above

PPG Co. buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 30 days after the invoice date. Net purchases amount to $730,000 per year. On average, how much "free" trade credit does PPG receive during the year? (Assume a 365-day year.) a. $30,000 b. $40,000 c. $50,000 d. $60,000 e. None of the above

Essentials Of Investments
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
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PPG Co. buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 30 days after the invoice date. Net purchases amount to $730,000 per year. On average, how much "free" trade credit does PPG receive during the year? (Assume a 365-day year.) a. $30,000 b. $40,000 c. $50,000 d. $60,000 e. None of the above
Transcribed Image Text:PPG Co. buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 30 days after the invoice date. Net purchases amount to $730,000 per year. On average, how much "free" trade credit does PPG receive during the year? (Assume a 365-day year.) a. $30,000 b. $40,000 c. $50,000 d. $60,000 e. None of the above
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