A company has daily purchases of $10,000 from its supplier. The supplier offers trade credit under the following terms: 3/20, net 50 days. The company finally chooses to pay on time (pay in the 50th day) but not to take the discount. We assume 365 days per year. 

What is the average level of the company's free trade credit?

What is the average level of the company's total trade credit?

What is the average level of the company's costly trade credit?

Answer rating: 100% (QA)

To answer these questions we need to define the terms free trade credit total trade credit and costly trade credit Free trade credit refers to the amo... View the full answer