Problem $8-11($Algo$)$ Net credit position $[$LO$8-1]$

McGriff Dog Food Company normally takes $21$ days to pay for average daily credit purchases of $$9,680.$ Its average daily sales are $$10,300,$ and it collects accounts in $28$ days.

a$.$ What is its net credit position?

Net credit position

b$-1.$ If the firm extends its average payment period from $21$ days to $31$ days $($and all else remains the same$),$ what is the firm's new net credit position?

Note: Negative amount should be indicated by a minus sign.

Net credit position

b$-2.$ Has the firm improved its cash flow?

Yes

No