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Problem 8 - 1 1 ( Algo ) Net credit position [ LO 8 - 1 ] McGriff Dog Food Company normally takes 2 1
Problem Algo Net credit position LO
McGriff Dog Food Company normally takes days to pay for average daily credit purchases of $ Its average daily sales are $ and it collects accounts in days.
a What is its net credit position?
Net credit position
b If the firm extends its average payment period from days to days and all else remains the same what is the firm's new net credit position?
Note: Negative amount should be indicated by a minus sign.
Net credit position
b Has the firm improved its cash flow?
Yes
No
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