Aggarwal Inc

question 8

Multiple Choice

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.

• A)$458,160
• B)$482,273
• C)$507,656
• D)$534,375
• E)$562,500

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Definitions:

Punctuated Equilibrium

Model of evolutionary change in a species which suggests that there are long periods of little or no change, followed by brief periods of rapid speciation.

Phyletic Gradualism

Phyletic gradualism is an evolutionary model suggesting that species evolve through a gradual change of populations over long periods of time.

Speciation

The evolutionary process by which new biological species arise.