Taylor textbooks inc buys on terms of 112 net 59 days it


Taylor Textbooks Inc. buys on terms of 1/12, net 59 days. It does not take discounts, and it typically pays on time, 59 days after the invoice date. Net purchases amount to $550,000 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.)

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Financial Management: Taylor textbooks inc buys on terms of 112 net 59 days it
Reference No:- TGS01128074

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