Safety Window and Door Co

question 111

Multiple Choice

Safety Window and Door Co.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 $450,000 per year.On average, how much "free" trade credit does the firm receive during the year? (Assume a 365-day year, and note that purchases are net of discounts.)

• A) $18,493
• B) $19,418
• C) $20,389
• D) $21,408
• E) $22,479

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Definitions:

Trade Agreements

Legally binding contracts between two or more nations that outline the rules for trade between them, often aimed at reducing tariffs and facilitating the free flow of goods and services.

Ordinance of 1785

A law that regulated land sales in the Old Northwest. The land surveyed was divided into 640-acre plots and sold at $1 per acre.

Self-Government

A form of government in which the people govern themselves without external control.

Apportioning

The process of distributing or allotting something among various parties, often used in the context of legislative representation or resource allocation.