Question: Compute the new average collection period based on the terms Table 2 and the results of the pilot study. Use the simplify assumption that under

 Compute the new average collection period based on the terms Table
2 and the results of the pilot study. Use the simplify assumption

Compute the new average collection period based on the terms Table 2 and the results of the pilot study. Use the simplify assumption that under the new policies all customers will all pay the end of the 10" day or the end of the 30" day. i.e., for the 1/10, net 30 10% x 10 days = 1 day 90% x 30 days = 27 days 28 days average collection period

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