Kyoto Joe, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 2/10, net 30. Based

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Kyoto Joe, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 2/10, net 30. Based on experience, 65 percent of all customers will take the discount.

a. What is the average collection period for the company?

b. If the company sells 980 forecasts every month at a price of $1,670 each, what is its average balance sheet amount in accounts receivable?

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Fundamentals Of Corporate Finance

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Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Aug 24, 2021 06:49 AM

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Kyoto Joe, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 2/10, net 30. Based

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Fundamentals Of Corporate Finance

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