You prefer to extend credit on the assumption that you will be paid in full within 42 days of the sales. Firm X has average inventory of $640,000 with all cash sales (no credit sales) of $5,300,000. Ifyou extend credit to this firm, can you expect to be paid on time? Assume 365 days in a year. Round your answer to the nearest whole number.The inventory turnover isdays, therefore, you -Select-expect to be paid in 42 days.

Solution:- As given in the question, Firm X has an average inventory of $640,000 and sales of…

ou prefer to extend credit on the assumption that you will be paid in full within 42 days of the sales. Firm X has average inventory of $640,000 with a you extend credit to this firm, can you expect to be paid on time? Assume 365 days in a year. Round your answer to the nearest whole number. The inventory turnover is days, therefore, you -Select- expect to be paid in 42 days.

ou prefer to extend credit on the assumption that you will be paid in full within 42 days of the sales. Firm X has average inventory of $640,000 with a you extend credit to this firm, can you expect to be paid on time? Assume 365 days in a year. Round your answer to the nearest whole number. The inventory turnover is days, therefore, you -Select- expect to be paid in 42 days.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 1P

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