Exercise 5-7 On July 1, 2020, the creditors of Silang Corporation extended until Nov. 1, 2020 the terms of payment of amounts due to them and requested that cash of P1,700,000 be raised that time. The company had an inventory of raw materials on hand at July 1 costing P400,000 and inventory of finished goods costing P324,000. There was no work in process that day. Data from past operations indicate that it takes 60 days to convert raw materials into finished goods. Combined labor and overhead required for conversion are equal to 80% of the raw material cost, and cash is available for the required labor and overhead payments. The manufacturing cost of the product is equal to 60% of the selling price. Last year, the company reported net credit sales of P12,000,000 and had an average accounts receivable balance of P1,550,000. After the product is manufactured, it takes about 15 days before the product is delivered to the customers. There were no outstanding accounts receivable on July 1, 2020 and all cash had been paid over to creditors to reduce past indebtedness, with the exception of the cash needed to pay labor and overhead for processing the raw materials inventory and the cash needed for operating expenses up to Nov. 1, 2020 amounting to P200,000. REQUIRED: 1. From the information given, does it appear that the creditor's terms can be met by Nov. 1, 2020