1. Buskirk Construction 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 $500,000 per year. On average, how much "free" trade credit does the firm receive during the year? (Assume a 365-day year, and note that purchases are net of discounts.)
a. $16,644
b. $19,315
c. $18,699
d. $20,548
e. $24,863
2. Soft capital rationing is imposed on a firm from ____ sources, while hard capital rationing is imposed from ____ sources.
A) internal; external
B) internal; internal
C) external; internal
D) external; external