Roton IncPurchases Merchandise on Terms of 2/15,net 40,and Its Gross Purchases

Multiple Choice

Roton Inc.purchases merchandise on terms of 2/15,net 40,and its gross purchases (i.e.,purchases before taking off the discount) are $800,000 per year.What is the maximum dollar amount of costly trade credit the firm could get,assuming it abides by the supplier's credit terms? (Assume a 365-day year.)

A) $53,699
B) $56,384
C) $59,203
D) $62,163
E) $65,271