Instruction 19

question 34

Multiple Choice

Instruction 19.1: Use the information to answer the following question(s) .
Sunny Manufacturing Systems Inc. is supplied with plastic chips for their plastic injection molding manufacturing process. Their supplier, Sun Chemical, Inc. offers financing terms of a 2% discount if the accounts payable are paid in 10 days or less with the full balance due in 45 days. Short-term financing available to Sunny Manufacturing is available at an annual rate of 9.6%. Sunny Manufacturing has just purchased $400,000 of plastic chips from Sun Chemical.
-Refer to Instruction 19.1. What is the amount of money Sunny Manufacturing will save on accounts payable if they accept the discount?

• A)$400,000
• B)$8,000
• C)$33,333
• D)$20,000

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Definitions:

Over-the-Counter

Referring to drugs or medications that can be purchased without a prescription directly from a store or pharmacy.

Depression

A common mental disorder characterized by persistent sadness, loss of interest in activities, and a range of emotional and physical problems.

Behavioral Symptoms

Observable actions or reactions of an individual that may indicate a mental or neurological condition.

Preoccupation

A state of mind where one's attention is absorbed or engrossed by a particular subject or thought.