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Frosty Corp has annual sales of 730 M and the cost of goods sold is 385M. Its inventory conversion period is 50 days and a
Frosty Corp has annual sales of 730 M and the cost of goods sold is 385M. Its inventory conversion period is 50 days and a payable deferral period is 30 days . Half of these sales are made to customers who pay on day 10 and the other half to customers who dont tKe the discount. The average level of accounts receivable is 50M. Assuming 365 days a year. find Accounts payable expected level on inventory, expected level of Accounts payable and the nominal cost of trade credit.
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