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With regard to accounts payable: a) Explain the significance of financing with accounts payable. b)...

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Accounting

With regard to accounts payable:

a) Explain the significance of financing with accounts payable.

b) Explain (including computations) the rationale of taking a cash discount, such as 3/15, n/40.

c) Additionally, determine the approximate balance of accounts payable, if a company stretches its payables to 50 days and on average, they make purchases of $1,000,000 per day from their vendors.

d) Explain what the stretching accomplishes if the vendors should be paid in 40 days.

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