Arnold Inc

question 125

Multiple Choice

Arnold Inc.purchases merchandise 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:

Sustained Competitive Advantage

The ability of a company to maintain its competitive advantage over its competitors over a long period, thereby securing its market position and profitability.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, including innovation, brand, cost structure, distribution network, customer service, and product quality.

Top Executives

Individuals who hold the highest-level management positions within an organization, responsible for developing and implementing policies and strategic goals.

Hierarchical Approach

An organizational strategy where decision-making and power are concentrated at higher levels of management, promoting a clear chain of command.