Question: 1 0 ) A firm has $ 4 0 0 , 0 0 0 in credit sales and $ 1 0 0 , 0 0

10) A firm has $400,000 in credit sales and $100,000 in accounts receivable. Compute accounts receivable turnover and average number of collection days. How do these numbers relate to the terms of 2/10 net/30?
11) If Larry from question 9 has accounts receivable of $100,000 rather than $60,000:
1. What is Larrys accounts receivable turnover?
2. What is Larrys average collection period?
3. What should Larry do, if anything?

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