Aggarwal inc buys on terms of 210 net 30 and it always pays


Aggarwal Inc. buys on terms of 2/10, net 30, and it always pays on the 30th day. The CFO calculates that the average amount of costly trade credit carried is $375,000. What is the firm's average accounts payable balance? Assume a 365-day year.

 

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Financial Management: Aggarwal inc buys on terms of 210 net 30 and it always pays
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