Net Credit Position Assignment | Homework for You
June 11th, 2020
McGriff Dog Food Company normally takes 20 days to pay for average daily credit purchases of $9,000. Its average daily sales are $10,000 and it collects accounts in 25 days.
a. What is its net credit position? Net credit position $[
b. If the firm extends its average payment period from 20 days to 32 days (and all else remains the same), what is the firm’s new net credit position? (Negative answer should be indicated by a minus sign. Do not round intermediate calculations.) New net credit positions. Get Finance homework help today