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EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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
Transcribed Image Text:Sharma Inc. buys on terms of 2/15, net 55, and it
always pays on the 55th day. The CFO calculates
that the average amount of costly trade credit
carried is $385,000. What is the firm's average
accounts payable balance? Assume a 365-day
year.
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