Extracted data from Penguin plc 's last accounts are as follows A major supplier to Penguin offers a discount of 2 per cent on all future supplies if payment is made on the seventh day following delivery rather than the present 70th day Monthly purchases from this supplier amount to a regular pound 0 8m Penguin pays 15 per cent annual percentage rate on its overdraft Required Consider what Penguin should do with respect to this supplier Annual sales Profits before interest and tax Interest Shareholder funds Long term debt 0 5 Stocks Trade creditors Bank overdraft

Question: Extracted data from Penguin plc's last accounts are as follows: A major supplier to Penguin offers a discount of 2 per cent on all future

Extracted data from Penguin plc's last accounts are as follows:

A major supplier to Penguin offers a discount of 2 per cent on all future supplies if payment is made on the seventh day following delivery rather than the present 70th day. Monthly purchases from this supplier amount to a regular £0.8m.
Penguin pays 15 per cent annual percentage rate on its overdraft.
Required
Consider what Penguin should do with respect to this supplier.

Annual sales Profits before interest and tax Interest Shareholder funds Long-term debt 0.5 Stocks Trade creditors Bank overdraft

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