1. Kantorovich Company normally takes 21 days to pay for its average daily credit purchases of $2,000. Its average daily sales are $3,000, and it collects accounts in 16 days. What is its net credit position? Note that a negative position implies receivables exceed payables.
$6,000
$6,000
$7,000
$8,000
2. Massa Machine Tool expects total sales of $20,000. The price per unit is $8. The firm estimates an ordering cost of $13.28 per order, with an inventory cost of $1.12 per unit. What is the optimum order size?
122 units
97 units
146 units
243 units