Problem 9-18A firm with sales of $21,000,000 has inventory of $1,800,000. The firm has no cash sales (all sales are on credit and are collected within 60days). You are willing to sell inventory to the firm on credit provided that you will be paid within 77 days. Should you sell to this firm on credit?Assume there are 365 days in a year. (This question is more subtle than it appears. Think through all the given information.) Round your answerto the nearest whole number.On average, it will take you31days to receive the payments, therefore, you should not vsell to the firm on credit.

Inventory Management -The oversight of a business's inventory, encompassing the manufacturing,…

firm with sales of $21,000,000 has inventory of $1,800,000. The firm has no cash sales (all sales are on credit and are collected within 60 ys). You are willing to sell inventory to the firm on credit provided that you will be paid within 77 days. Should you sell to this firm on credit? sume there are 365 days in a year. (This question is more subtle than it appears. Think through all the given information.) Round your answer the nearest whole number. sell to the firm on credit.

firm with sales of $21,000,000 has inventory of $1,800,000. The firm has no cash sales (all sales are on credit and are collected within 60 ys). You are willing to sell inventory to the firm on credit provided that you will be paid within 77 days. Should you sell to this firm on credit? sume there are 365 days in a year. (This question is more subtle than it appears. Think through all the given information.) Round your answer the nearest whole number. sell to the firm on credit.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P

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