Having an issue with question C. My answer continues to be incorrect. Thank you. McGriff Dog Food Company...

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Finance

Having an issue with question C. My answer continues to beincorrect. Thank you.
McGriff Dog FoodCompany normally takes 27 days to pay for average daily creditpurchases of $9,460. Its average daily sales are $10,700, and itcollects accounts in 27 days.

a. What is its net credit position?

b-1.If the firm extends its average payment period from 27 days to 38days (and all else remains the same), what is the firm's new netcredit position? (Negative amount should be indicated by aminus sign.)

Answer & Explanation Solved by verified expert

4.5 Ratings (661 Votes)

aNet Credit Position Net Credit Position Accounts Receivables Accounts Payables Accounts Receivables Average daily sales x Average Collection Period 10700 per day x 27 Days 288900 Accounts See Answer

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Having an issue with question C. My answer continues to beincorrect. Thank you.McGriff Dog FoodCompany normally takes 27 days to pay for average daily creditpurchases of $9,460. Its average daily sales are $10,700, and itcollects accounts in 27 days. a. What is its net credit position? b-1.If the firm extends its average payment period from 27 days to 38days (and all else remains the same), what is the firm's new netcredit position? (Negative amount should be indicated by aminus sign.)