a-retailer-purchases-10000-worth-of-goods-with-terms-515-net-60-if-they-pay-on-t

Question

A retailer purchases $10,000 worth of goods with terms 5.15 net 60. If they pay on the 10th day, what is the impact on their cash flow?

Accepted Answer

Cash flow decreases by $9,500.

Answer

Cash flow decreases by $9,000.

Answer

Cash flow decreases by $10,000.

Answer

Cash flow decreases by $10,500.

A retailer purchases \$10,000 worth of goods with terms 5.15 net 60. If they pay on the 10th day, what is the impact on their cash flow?