What Is the Financing Period for a Company That Takes

question 128

Essay

What is the financing period for a company that takes an average of 50 days to sell inventory,takes an average of 110 days to collect for its sales,and has payment terms of 45 days on its purchases? Show calculations.

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Definitions:

Produce Watches

the process or industry involved in manufacturing timepieces, requiring precision engineering and design-based skills.

Produce Cheese

The process of converting milk into cheese through various techniques that involve coagulation, curdling, and fermentation.

Trading Partners

Countries or entities that engage in the exchange of goods, services, or information.

Largest

Being the greatest in size, quantity, or degree compared to others in a set or group.