Assume the credit terms offered to your firm by your suppliers are 3 / 5, Net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30.
Chapter 27( page 925):
Which of the following companies are likely to have high short-term financing needs? Why? A clothing retailer A professional sports team An electric utility A company that operates toll roads A restaurant chain
Sailboats Etc. is a retail company specializing in sailboats and other sailing-related equipment. The following table contains financial forecasts as well as current( month 0) working capital levels. During which months are the firm’ s seasonal working capital needs the greatest? When does it have surplus cash?