EM Co.'s budgeted sales and budgeted cost of sales for the coming year are P212,000,000 and P132,500,000 respectively. Short-term interest rates are expected to be 5%. Assume that all inventories must be financed with short-term debt.. If EM could increase inventory turnover from its current8 times per year to 10 times per year, its expected interest cost savings in the current year would be: 2. A PO B P81,812 P165,625

EM Co.'s budgeted sales and budgeted cost of sales for the coming year are P212,000,000 and P132,500,000 respectively. Short-term interest rates are expected to be 5%. Assume that all inventories must be financed with short-term debt.. If EM could increase inventory turnover from its current8 times per year to 10 times per year, its expected interest cost savings in the current year would be: 2. A PO B P81,812 P165,625

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2MC

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