Description of this paper

Discount and financing the purchase with the line of credit.

Description

solution


Question

Sam Parker is offered credit terms of 2/10 net 45 by most of its suppliers but frequently does not have the cash available to take the discount. The firm has a credit line available at a local bank at an interest rate of 12 percent. The firm should;1) give up the discount and financing the purchase with the line of credit.;2) take the cash discount and pay on the 45thday after the date of sale;3) take the cash discount and pay on the first day of the cash discount period;4) take the cash discount and financing the purchase with the line of credit;Explain please your answer

 

Paper#27598 | Written in 18-Jul-2015

Price : $37
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