The following items appear (in millions) on the 28 June 20X1 financial statements of Global Exports Ltd.

On 29 June 20X1 Global Exports had accounts receivable of \(\$ 6082.8\) million and inventory of \(\$ 6460.8\) million. Suppose that in February 20X2, Global Exports wants to arrange with its supplier to pay for merchandise 90 days after the purchase.
Required:
Based on the above information, would you, as a supplier, feel confident about the ability of Global Exports to pay you in 90 days? Justify your answer. If you were making the decision to grant Global Exports credit, what other information would you like to know about Global Exports Ltd?

Transcribed Image Text:

Accounts receivable Inventory Sales (net) Cost of goods sold $ 6799.2 7 005.6 61 525.2 41 912.4