Four primary elements in firm credit policy

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Reference no: EM131873459

1. What are the four primary elements in a firm’s credit policy?

2. Safety Window and Door Co. 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 $450,000 per year. On average, how much "free" trade credit does the firm receive during the year? (Assume a 365-day year, and note that purchases are net of discounts.)

Reference no: EM131873459

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