Taylor Textbooks Inc

question 114

Multiple Choice

Taylor Textbooks Inc.buys on terms of 2/15, net 50 days.It does not take discounts, and it typically pays on time, 50 days after the invoice date.Net purchases amount to $450,000 per year.On average, what is the dollar amount of costly trade credit (total credit − free credit) the firm receives during the year? (Assume a 365-day year, and note that purchases are net of discounts.)

• A) $43,151
• B) $45,308
• C) $47,574
• D) $49,952
• E) $52,450

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Definitions:

Sociocultural Influences

The impact of societal and cultural factors on individual behaviors, beliefs, and attitudes.

Cognitive Development

The process by which a person's ability to think, understand, and interact with the world develops through childhood and adolescence.

Lev Vygotsky

A Soviet psychologist known for his work on cognitive development, particularly the social development theory which emphasizes the role of social interaction in the development of cognition.

Conservation

The protection and preservation of natural resources and the environment to prevent depletion and degradation.