The BlueSky lengthened its payables period to “control costs and optimize cash flow.” Exactly what is the cash benefit to BlueSky from this change?
Answer to relevant QuestionsSaunders Corp. has a book net worth of $13,205. Longterm debt is $8,200. Net working capital, other than cash, is $4,205. Fixed assets are $17,380. How much cash does the company have? If current liabilities are $1,630, what ...The Torrey Pine Corporation’s purchases from suppliers in a quarter are equal to 75 percent of the next quarter’s forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 20 percent of sales, ...In the chapter opening, we discussed the enormous cash positions of several companies. Why would firms such as these hold such large quantities of cash?Bird’s Eye Treehouses, Inc., a Kentucky company, has determined that a majority of its customers are located in the Pennsylvania area. It therefore is considering using a lockbox system offered by a bank located in ...You place an order for 350 units of inventory at a unit price of $140. The supplier offers terms of 1y10, net 30.a. How long do you have to pay before the account is overdue? If you take the full period, how much should you ...
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