EBK CORPORATE FINANCE
EBK CORPORATE FINANCE
11th Edition
ISBN: 8220102798878
Author: Ross
Publisher: YUZU
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Chapter 26, Problem 7QP

a.

Summary Introduction

To compute: The payments to supplier.

Payable Period:

The time period starts when the company purchase raw material from supplier and pay the cash back to the supplier this time period is the payable period. Generally large companies lengthen the payable period to get the benefit of cash.

b.

Summary Introduction

To compute: The payments to supplier if payback period is 90 days.

c.

Summary Introduction

To compute: The payments to supplier if payback period is 60 days.

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