What is the firm new net credit position

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Reference no: EM131975864

McGriff Dog Food Company normally takes 27 days to pay for average daily credit purchases of $9,460. Its average daily sales are $10,700, and it collects accounts in 27 days.

a. What is its net credit position?

b-1. If the firm extends its average payment period from 27 days to 38 days (and all else remains the same), what is the firm's new net credit position? (Negative amount should be indicated by a minus sign.)

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

Reference no: EM131975864

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