Hayes Hypermarket purchases $4,562,500 in goods over a 1-year period from its sole supplier. The supplier offers trade credit under the following terms: 2/15, net 50 days. If Hayes chooses to pay on time but not to take the discount, what is the average level of the company's accounts payable, and what is the effective annual cost of its trade credit? (Assume a 365-day year.)

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The Answer of Hayes Hypermarket purchases $4,562,500 in goods over a 1-year period from its sole supplier. The supplier offers trade credit under the following terms: 2/15, net 50 days. If Hayes chooses to pay on time but not to take the discount, what is the average level of the company's accounts payable, and what is the effective annual cost of its trade credit? (Assume a 365-day year.)

Hayes Hypermarket Purchases $4,562,500 in Goods Over a 1-Year Period