What is the dollar amount of costly trade credit the firm

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Taylor Textbooks Inc. buys on terms of 1/13, net 58 days. It does not take discounts, and it typically pays on time, 58 days after the invoice date. Net purchases amount to $400,000 per year. On average, what is the dollar amount of costly trade credit (total credit - free credit) the firm receives during the year? (Assume a 365-day year, and note that purchases are net of discounts.)

Reference no: EM13917391

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What is the dollar amount of costly trade credit the firm : Taylor Textbooks Inc. buys on terms of 1/13, net 58 days. It does not take discounts, and it typically pays on time, 58 days after the invoice date. Net purchases amount to $400,000 per year. On average, what is the dollar amount of costly trade cred..

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