Does this additional information impact the answer? he bank also noted the rapid increase in Cartwright Lumber's accounts and notes payable in the recent past, especially in the spring of 2004. The usual terms of purchase in the trade provided for a discount of 2% for payments made within 10 days of the invoice date. Accounts were due in 30 days at the invoice price, but suppliers ordinarily did not object if payments lagged somewhat behind the due date. During the last two years, Cartwright had taken very few purchase discounts because of the shortage of funds arising from his purchase of Stark's interest in the business and the additional investments in working capital associated with the company's increasing sales volume. Trade credit 1 Sales in 1999 and 2000 amounted to $778,000 and $1,103,000, respectively; profit data for these years are not comparable with those of 2001 and later years because of the shift from a partnership to a corporate form of organization. As a corporation, Cartwright was taxed at the rate of 15% on its first $50,000 of income, 25% on the next $25,000 of income, and 35% on all additional income above $75,000. 2 Cartwright Lumber Company 204-126 was seriously extended in the spring of 2004 as Cartwright strove to hold his bank borrowing within the $250,000 ceiling imposed by Suburban National Bank