Sampson Orange Juice Company normally takes 30 days to pay for its average daily credit purchases of $7,500. Its average daily sales are $9,000, and it collects its accounts in 34 days. a. What is its net credit position? (Do not round intermediate calculations.) Net credit position b. If the firm extends its average payment period from 30 days to 45 days (and all else remains the same), what is the firm's new net credit position? (Negative answer should be indicated by a minus sign. Do not round intermediate calculations.) New net credit position $ $

Sampson Orange Juice Company normally takes 30 days to pay for its average daily credit purchases of $7,500. Its average daily sales are $9,000, and it collects its accounts in 34 days. a. What is its net credit position? (Do not round intermediate calculations.) Net credit position b. If the firm extends its average payment period from 30 days to 45 days (and all else remains the same), what is the firm's new net credit position? (Negative answer should be indicated by a minus sign. Do not round intermediate calculations.) New net credit position $ $

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 11PROB

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Problem 8-10 Sampson Orange Juice Company normally takes 30 days to pay for its average daily credit purchases of $7,500. Its average daily sales are $9,000, and it collects its accounts in 34 days. a. What is its net credit position? (Do not round intermediate calculations.) Net credit position b. If the firm extends its average payment period from 30 days to 45 days (and all else remains the same), what is the firm's new net credit position? (Negative answer should be indicated by a minus sign. Do not round intermediate calculations.) New net credit position
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