McGriff Dog Food Company normally takes 20 days to pay for average daily credit purchases of $9,960. Its average daily sales are $10,510, and it collects accounts in 25 days.
a. What is its net credit position?
b-1. If the firm extends its average payment period from 20 days to 28 days (and all else remains the same), what is the firm's new net credit position? (Negative amount should be indicated by a minus sign.)