Finance
A firm's annual credit sales are $1.41 million, with 48.95% of its daily average paid out in purchases. It usually takes the company 30 days to meet its purchasing obligations. This payment pattern has not changed in recent years. However, the firm's commitment to accounts receivable has shifted based on its current annual net income of $29,720 which meets the 3.17% required return, anticipated by senior managament a year earlier. Normally, the firm collect its accounts in 21 days, an average which remains unaffected
Required: In percentage terms, by how much are the firm's receivables greater (or less) than its payables?
(Use 360 day a year)
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