A supplier has offered your company a 1 discount for all


Question: A supplier has offered your company a 1% discount for all bills that are paid 15 days after they are billed. The bills would normally be due 45 days after they are billed. What is the return on paying the bills early? If your company can borrow funds from a line of credit at a yield of 13%, is it financially attractive to pay the bills early? The line of credit requires a compensating balance.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: A supplier has offered your company a 1 discount for all
Reference No:- TGS02313765

Expected delivery within 24 Hours