1. Which of the following is the correct expression for the payable deferral period ?
a. Payables turnover / 360
b. Cost of goods sold / Payables
c. Daily credit purchases / Accounts payable
d. Accounts payable / Daily credit purchases
e. Payables turnover × 360
2. Sunshine Inc. tightened its credit policy, resulting in a $10 change in net present value (NPV) on a daily basis. If Sunshine's expected return is 8%, then the change in the value of the firm is_____. (Note: Assume 360 days in a year)?
a. $5,000
b. $34,000
c. $20,000
d. $45,000
e. $60,000