Net purchases amount to $650,000 per year. On average, how much "free" trade credit does the firm receive during the year?

Finance Basics

Buskirk Construction buys on terms of 2/15, net 60 days. It does not take discounts, and it typically pays on time, 60 days after the invoice date. Net purchases amount to $650,000 per year. On average, how much “free” trade credit does the firm receive during the year?

 

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