Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firm with sales of $13,000,000 has inventory of $800,000. The firm has no cash sales (all sales are on credit and are collected within

A firm with sales of $13,000,000 has inventory of $800,000. The firm has no cash sales (all sales are on credit and are collected within 33 days). You are willing to sell inventory to the firm on credit provided that you will be paid within 76 days. Should you sell to this firm on credit? Assume there are 365 days in a year. (This question is more subtle than it appears. Think through all the given information.) Round your answer to the nearest whole number.

On average, it will take you ___ days to receive the payments, therefore, you -Select- sell to the firm on credit.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Blockchain Digital Finance And Inclusion

Authors: David Lee, Robert H. Deng

1st Edition

012812282X, 978-0128122822

More Books

Students also viewed these Finance questions

Question

3. What are the possible causes of synaesthesia?

Answered: 1 week ago

Question

1. Identify three approaches to culture.

Answered: 1 week ago

Question

2. Define communication.

Answered: 1 week ago