Aggarwal Inc. buys on terms of 2/10 net 30, and it always pays on the 30th day.

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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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Intermediate Financial Management

ISBN: 978-1111021573

10th Edition

Authors: Brigham, Daves

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Posted Date: Feb 26, 2024 07:59 AM

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Aggarwal Inc. buys on terms of 2/10 net 30, and it always pays on the 30th day.

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Heres how to find Aggarwal Incs average accounts payable balance Calculate the discount period We need to know how long Aggarwal takes advantage of th... View the full answer

Intermediate Financial Management

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