mpson Orange Juice Company normally takes 30 days to pay far its average daily credit purchases af...

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Finance

mpson Orange Juice Company normally takes 30 days topay far its average daily
credit purchases af $8.400,.:lts average daily sales are $9,900,and it coHects its
accounts irt 34 days.qt .
a. What is its net credit position?
Net credit position: : " S
b. If the firm extends its average payment period from30 days to 45 days (and all eased
remains the same), v/hat is the firm's new-net credit position?(Negativesanswer
should be indicated by a minnie sign.)
New net credit
position

Answer & Explanation Solved by verified expert

4.5 Ratings (762 Votes)

a the following information is given The average daily sales is 9900 the average collection period is 34 days the accounts receivable will be calculated as under accounts receivable average daily sales x See Answer

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mpson Orange Juice Company normally takes 30 days topay far its average dailycredit purchases af $8.400,.:lts average daily sales are $9,900,and it coHects itsaccounts irt 34 days.qt .a. What is its net credit position?Net credit position: : " Sb. If the firm extends its average payment period from30 days to 45 days (and all easedremains the same), v/hat is the firm's new-net credit position?(Negativesanswershould be indicated by a minnie sign.)New net creditposition