Your firm buys on credit terms of 2/10,net 45,and it always pays on day 45.If you calculate that this policy effectively costs your firm $157,500 each year,what is the firm's average accounts payable balance?
A) $1,234,000
B) $75,000
C) $157,500
D) $625,000
E) $750,000

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The Answer of Your firm buys on credit terms of 2/10,net 45,and it always pays on day 45.If you calculate that this policy effectively costs your firm $157,500 each year,what is the firm's average accounts payable balance?
A) $1,234,000
B) $75,000
C) $157,500
D) $625,000
E) $750,000

Your Firm Buys on Credit Terms of 2/10,net 45,and It