2 E Kyoto Joe, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 2/10,...
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2 E 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? 4 Input Area: L Terms Net Percentage taking discount Units sold per period 10 Sales price 11 Days per year 2%/ 10 DE 1659 930 $1,670 12 Months per year 13 14 (Use cells A6 to D12 from the given information to complete this question.) 16 Output Area: 17 Average collection period Total annual sales Receivables turnover 21 Average receivables balance 2 E 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? 4 Input Area: L Terms Net Percentage taking discount Units sold per period 10 Sales price 11 Days per year 2%/ 10 DE 1659 930 $1,670 12 Months per year 13 14 (Use cells A6 to D12 from the given information to complete this question.) 16 Output Area: 17 Average collection period Total annual sales Receivables turnover 21 Average receivables balance
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