Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You prefer to extend credit on the assumption that you will be paid in full within 48 days of the sales. Firm X has average

You prefer to extend credit on the assumption that you will be paid in full within 48 days of the sales. Firm X has average inventory of $570,000 with all cash sales (no credit sales) of $6,700,000. If you extend credit to this firm, can you expect to be paid on time? Assume 365 days in a year. Round your answer to the nearest whole number.

The inventory turnover is ____ days, therefore, you -Select-can/cannot expect to be paid in 48 days.

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

Bond Markets Analysis And Strategies

Authors: Frank J. Fabozzi

6th Edition

0131986430, 9780131986435

More Books

Students also viewed these Finance questions

Question

7. What is a 2B+D?

Answered: 1 week ago

Question

Describe some common hazards in the contemporary workplace

Answered: 1 week ago