Specifically, is Accounts Payable considered debt for this purpose?, the answer is no.But if you let them go for 10 days or so, you forfeit a 2% to 10% discount, and may start incurring interest and service charges after 30. I worked for a large outfit that could get away with it, so they tended to let their A/P go 90 days or more and made money on the difference that more than covered the interest and charges (they are not succeeding at that anymore and I would no longer touch their stock with any of my money). But before that, I worked for a small outfit and they paid within 10 days.So should not A/P be divided into two pieces? Non-debt: which forfeits no discounts, pays no interest and service charges. Debt: which has forfeited discounts, pays service charges and interest.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra