Buskirk Construction Buys on Terms of 2/15,net 60 Days

question 7

Multiple Choice

Buskirk Construction buys on terms of 2/15,net 60 days.It does not take discounts,and it typically pays on time,60 days after the invoice date.Net purchases amount to $450,000 per year.On average,how much "free" trade credit does the firm receive during the year? (Assume a 365-day year,and note that purchases are net of discounts.)

• A)$18,493
• B)$19,418
• C)$20,389
• D)$21,408
• E)$22,479

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Definitions:

Cerebellum

A part of the brain located at the base of the skull, responsible for coordinating voluntary movements, balance, and posture.

Brainstem

The structure in the brain that connects the spinal cord to the forebrain and cerebrum, controlling vital functions such as breathing and heart rate.

CNS

Stands for Central Nervous System, which comprises the brain and spinal cord, serving as the primary processing center for the entire nervous system.

Arachnoid Granulations

Small protrusions of the arachnoid (the middle layer of the meninges) through the dura mater; they absorb cerebrospinal fluid into the venous system.