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Average level of the company free trade credit

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Reference no: EM132828531

Firm purchases $365,000 in goods over a 1-year period from its sole supplier. The supplier offers trade credit under the following terms: 2/10, net 30 days. Firm finally chooses to pay on time (pay in the 30th day) but not to take the discount. We assume 365 days per year. What is the average level of the company's free trade credit?

Reference no: EM132828531

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