Roton IncPurchases Merchandise on Terms of 2/15,net 40,and Its Gross Purchases

question 24

Multiple Choice

Roton Inc.purchases merchandise on terms of 2/15,net 40,and its gross purchases (i.e.,purchases before taking off the discount) are $800,000 per year.What is the maximum dollar amount of costly trade credit the firm could get,assuming it abides by the supplier's credit terms? (Assume a 365-day year.)

• A)$53,699
• B)$56,384
• C)$59,203
• D)$62,163
• E)$65,271

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Definitions:

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Competition, jealousy, and conflict between siblings for parental attention, affection, or recognition.

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A system of concepts and assumptions used to understand and explain individual differences in behavior and personality traits.

Lasting Impact

A lasting influence or effect that continues to have significance or consequences over a long period.