(Solution) - Extracted data from Penguin plc s last accounts are as follows A -(2025 Original AI-Free Solution)

Paper Details

Extracted data from Penguin plc's last accounts are as follows:

A major supplier to Penguin offers a discount of 2 per cent on all future supplies if payment is made on the seventh day following delivery rather than the present 70th day. Monthly purchases from this supplier amount to a regular £0.8m.
Penguin pays 15 per cent annual percentage rate on its overdraft.
Required
Consider what Penguin should do with respect to this supplier.