a-company-purchases-8000-worth-of-goods-with-terms-210-net-30-if-they-pay-on-the

Question

A company purchases $8,000 worth of goods with terms 2.10 net 30. If they pay on the 5th day, what is the impact on their cash flow?

Accepted Answer

Cash flow decreases by $7,840.

Answer

Cash flow decreases by $7,920.

Answer

Cash flow decreases by $8,000.

Answer

Cash flow decreases by $8,160.

A company purchases \$8,000 worth of goods with terms 2.10 net 30. If they pay on the 5th day, what is the impact on their cash flow?