Ch 15: End-of-Chapter Problems - Working Capital Management 0 x

Ch 15: End-of-chapter Problems - Working Capital Management Back to Assignment Attempts: Knp the Highest: / 7 4. Problem 15.05 Click here to read the eBook: The Cash Conversion Cycle RECEIVABLES INVESTMENT O X McEwan Industries sells on terms Of 3/10, net 20. Total sales for the year are $640,500; Of the Customers pay on the 10th day and take discounts, While the Other pay, on average, 64 days after their purchases. Assume 365 days in year for your calculations. What is the da sales outstanding? Round your ansner to two decimal places. days What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate calculations. c. What is the ge cost of trade credit to customers who take the discount? Round your answers two decimal places. What iS the percentage COSt Of trade credit to Customers Who do not take the discount and pay in 64 days? Round your answers to decimal places. DO not round intermediate calculations. Nominal cost: Effective What would happen to McEwan's accounts receivable if it toughened up on its collection policy with the result that all nondiscount customers paid on the 20 decimal places. DO not round intermediate calculations. day? Round your answers to Days sales outstanding (DSO) Average receivables $ days Grade it NOW Save & Continue Continue without saving