2. Advanced Medical Technology is a new,rapidly growing firm that produces specialized medical instruments.They sell to hospitals and other surgical units, and a substantialportion of their sales are to foreign governments. Typical payableterms in the industry are payment with 30 days.
They recently reported the following financial information:
Sales $225,000
Cost of sales 180,000
Inventory 33,000
Accounts receivable 72,000
Accounts payable 30,000
# of Days per year 365
Compute the additional working capital financing period forAdvanced Medical.
Comment on their working capital financing period. What actions might Advanced take to improve their situation?
