Hinkle corporation buys on terms of 215 net 60 days it does


Hinkle Corporation 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 $550,000 per year. On average, what is the dollar amount of total trade credit (costly + free) the firm receives during the year, i.e., what are its average accounts payable? (Assume a 365-day year, and note that purchases are net of discounts.) a. $90,411 b. $94,932 c. $104,662 d. $109,895 e. $99,678

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Financial Management: Hinkle corporation buys on terms of 215 net 60 days it does
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