Filbeck Company Buys on Terms of 2/15,net 30 Days

question 80

Multiple Choice

Filbeck Company buys on terms of 2/15,net 30 days.It does not take discounts,and it typically pays 30 days after the invoice date.Net purchases amount to $500,000 per year.On average,how much free trade credit does the firm receive during a 365-day year?

• A)$20,548
• B)$21,575
• C)$22,654
• D)$23,787

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Definitions:

Cannibalization Potential

The likelihood that a new product will decrease sales of existing products offered by the same company.

Prototype

An initial model of a product used to test and validate design principles before full-scale production.

Full-scale Operating Model

A detailed representation of a business's functions and processes, enabling it to operate at full capacity and efficiency.

Business Analysis

The practice of identifying business needs and determining solutions to business problems, often through examining data and workflows.