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b) A firm purchased goods with a purchase price of RM12,500 and credit terms of 1/10 net 30. If the firm paid for these goods
b) A firm purchased goods with a purchase price of RM12,500 and credit terms of 1/10 net 30. If the firm paid for these goods on the 9th day after the date of sale, how much must the firm pay for the goods? (4 marks) c) You have recently been hired to improve the performance of Multiplex Corporation, which has been experiencing a severe cash shortage. As one part of your analysis, you want to determine the firm's cash conversion cycle. Using the following information and a 365-day year, what is your estimate of the firm's current cash conversion cycle? Current inventory=RM120,000. Annual sales = RM600,000. Accounts receivable =RM157,808. Accounts payable=RM25.000. Total annual purchases = RM365,000. Purchases credit terms: net 30 days. Receivables credit terms: net 50 days. (4 marks)
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