Problem
The following table records the credit conditions of 3 suppliers: Supplier Credit Conditions X 1.5/10 25 net Y 2.5/20 40 net Z 2.0/30 50 net (i) Determine for each supplier the discount percentage for prompt payment (ii) If the company used short-term financing, recommend whether it would be better to give up the prompt payment discount or accept it, considering taking out a 13% annual interest bank loan for this purpose. Evaluate each supplier separately using the results of part (AC) What impact will it have if we could extend the accounts payable settlement (net period only), for supplier Z for an additional 20 days?