Make gain and take advantage of trade discounts

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The benefit of the 2% trade discount will come at a cost of borrowing from Northup bank at a rate of 11% - which would be required due to the tight cash position of the company. This borrowing would decrease his accounts payable significantly but would add to his debt. For the short term, it is attractive to make gain and take advantage of the trade discounts.

Reference no: EM133291483

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