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McGriff Dog Food Company normally takes 24 days to pay for average daily credit purchases of...

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Finance

McGriff Dog Food Company normally takes 24 days to pay foraverage daily credit purchases of $9,950. Its average daily salesare $10,060, and it collects accounts in 32 days. a. What is itsnet credit position?

b-1. If the firm extends its average payment period from 24 daysto 40 days (and all else remains the same), what is the firm's newnet credit position? (Negative amount should be indicated by aminus sign.)

b-2. Has the firm improved its cash flow? Yes No

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McGriff Dog Food Company normally takes 24 days to pay foraverage daily credit purchases of $9,950. Its average daily salesare $10,060, and it collects accounts in 32 days. a. What is itsnet credit position?b-1. If the firm extends its average payment period from 24 daysto 40 days (and all else remains the same), what is the firm's newnet credit position? (Negative amount should be indicated by aminus sign.)b-2. Has the firm improved its cash flow? Yes No

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