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:

Shocks

In a psychological context, refers to an unexpected or disturbing event that causes emotional distress. In a physical context, it can refer to a sudden and violent blow or impact.

Stressful Experience

An event or situation that triggers significant emotional, physical, or psychological strain or tension in an individual.

Stressor

Any event, experience, or environmental stimulus that causes stress in an individual.

Control

In an experimental setting, the standard by which the test results can be compared; usually a group or condition that does not receive the experimental treatment.