ABC Company manufactures rubber shoes. It gets its raw materials from a supplier that grants it...

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ABC Company manufactures rubber shoes. It gets its raw materials from a supplier that grants it 30 days credit. ABC purchases P2.4 million in raw materials per year. Answer the questions that follow regarding ABC Company's cash position. Questions: 4. On the average, we can expect its average accounts payable to be around a. 100,000 b. 200,000 c. 2,400,000 d. None of the above. 5. If ABC usually finds itself short of cash because it sells its products on 45 days credit, what measure can it take to improve its cash position? a. Negotiate a longer credit term of at least 45 days with its supplier. b. Pay off its long-term debts c. Secure a term loan d. All of the above. 6. If your answer in number 5 fails, is there another recourse for the company in improving its cash position? a. Issue public shares b. Secure working capital loan c. Secure a term loan d. All of the above 7. If ABC fails in number 5, is there anything else it can do to solve its cash flow problem? a. Invest in its own rubber plantation. b. Negotiate to shorten its credit terms with its customers to at least 30 days credit. c. Acquire more advanced machinery.. d. All of the above.. ABC Company manufactures rubber shoes. It gets its raw materials from a supplier that grants it 30 days credit. ABC purchases P2.4 million in raw materials per year. Answer the questions that follow regarding ABC Company's cash position. Questions: 4. On the average, we can expect its average accounts payable to be around a. 100,000 b. 200,000 c. 2,400,000 d. None of the above. 5. If ABC usually finds itself short of cash because it sells its products on 45 days credit, what measure can it take to improve its cash position? a. Negotiate a longer credit term of at least 45 days with its supplier. b. Pay off its long-term debts c. Secure a term loan d. All of the above. 6. If your answer in number 5 fails, is there another recourse for the company in improving its cash position? a. Issue public shares b. Secure working capital loan c. Secure a term loan d. All of the above 7. If ABC fails in number 5, is there anything else it can do to solve its cash flow problem? a. Invest in its own rubber plantation. b. Negotiate to shorten its credit terms with its customers to at least 30 days credit. c. Acquire more advanced machinery.. d. All of the above..

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4 On average we can expect ABC Companys average accounts payable to be around b 200000 To calculate the average accounts payable we need to divide the ... View the full answer