70.2K

Verified Solution

Link Copied!

The owner of Sunset Food Ltd is estimating whether he needs a loan for his business or not. He is selling with credit period of 60 days. He is paying to his supplier with payment period of 30 days . ( 30 points )

A.Pls estimate whether Sunset Food needs finance or not . Pls draw in a timeline to explain. ( 10 points )

B.Another supplier approached him offering 60 days for payment . How would that effect Sunset Food in terms of financing needs ? Pls. explain. (10 points )

C.What other option does he have if Sunset Food prefers to work with the original supplier offering 30 days and he does not want to use cash finance. ( 10 points )

URGENT DO YOUR BEST

The owner of "Sunset Food Ltd "is estimating whether he needs a loan for his business or not. He is selling with credit period of 60 days. He is paying to his supplier with payment period of 30 days. ( 30 points ) A.Pls estimate whether Sunset Food needs finance or not. Pls draw in a timeline to explain. (10 points ) B.Another supplier approached him offering 60 days for payment. How would that effect Sunset Food in terms of financing needs ? Pls. explain. (10 points) C.What other option does he have if Sunset Food prefers to work with the original supplier offering 30 days and he does not want to use cash finance. (10 points ) 12:59

Answer & Explanation Solved by verified expert

See Answer