Kirk Development Buys on Terms of 2/15,net 60 Days

question 115

Multiple Choice

Kirk Development 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 $550,000 per year.On average,what is the dollar amount of total trade credit (costly + free) the firm receives during the year,i.e.,what are its average accounts payable? (Assume a 365-day year,and note that purchases are net of discounts.)

• A)$ 90,411
• B)$ 94,932
• C)$ 99,678
• D)$104,662
• E)$109,895

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Definitions:

Skeletal Muscle

A type of muscle tissue that is attached to bones and responsible for voluntary movements of the body.

Uninucleated

Having only one nucleus per cell, characteristic of most human cells except for certain muscle cells and some fungi.

Striated

Having a striped appearance, often referring to skeletal muscle tissue characterized by cross-stripes.

Skeletal Muscle

Muscle tissue that is attached to bones and is responsible for voluntary movements of the body.