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 ?