Soft capital rationing is imposed on firm

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1. 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 $500,000 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.)

a. $16,644

b. $19,315

c. $18,699

d. $20,548

e. $24,863

2. Soft capital rationing is imposed on a firm from ____ sources, while hard capital rationing is imposed from ____ sources.

A) internal; external

B) internal; internal

C) external; internal

D) external; external

Reference no: EM132055391

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