Melori Inc. has a current cash balance of $5,000. They have accounts receivable of $3,500, accounts payable of $1,350, and an inventory balance of $4,250. Their bank requires them to have a $5,000 cash balance at all times, but they would like to take advantage of a 3% cash discount on their accounts payable. 

What should they do?  

Answer rating: 100% (QA)

Based on the information provided Melori Inc can take advantage of the 3 cash discount on their acco... View the full answer