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:

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