Solved: How much free trade credit does the firm receive, Finance Basics

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How much free trade credit does the firm receive

Problem:

Filbeck Company (Buskirk Construction) 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 $500,000 per year. On average, how much "free" trade credit does the firm receive during the year? (Assume a 365-day year.)

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Finance Basics: How much free trade credit does the firm receive

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