Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:Fil Development 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 P550,000
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.)
P 90,411
O P109,895
P 99,678
O P 94,932
P104,662
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