A chain of appliance stores, APP Corporation, purchases inventory with a net price of $600,000 each...

A chain of appliance stores, APP Corporation, purchases inventory with a net price of $600,000 each day. The company purchases the inventory under the credit terms of 1/15, net 30. APP always takes the discount, but takes the full 15 days to pay its bills. What is the average accounts payable for APP? Round your answer to the nearest dollar.

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Expert Solution

Average accounts payable = Net inventory per day * Days in discount period

Average accounts payable = $600,000 * 15

Average accounts payable = $9,000,000

jeff jeffy answered 2 years ago

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