Consider the case of Mammoth Pictures Inc.: Mammoth Pictures Inc. has a very attractive credit policy,...

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Consider the case of Mammoth Pictures Inc.: Mammoth Pictures Inc. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Mammoth Pictures Inc. sells to its customers on credit terms of 1/10, net 30. If a customer bought $200,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Mammoth Pictures Inc. get from the customer? $170,000 $160,000 $180,000 $198,000 If the customer paid off the account after 15 days, Mammoth Pictures Inc. would receive Approximately 35% of Mammoth Pictures Inc.'s customers take advantage of the discount and pay on the 10th day. The remaining 65% take an average of 35 days to pay off their accounts. What is Mammoth Pictures Inc.'s days sales outstanding (DSO), or the average collection period? 31.6 days 30.2 days 26.3 days 21.0 days Consider the case of Mammoth Pictures Inc.: Mammoth Pictures Inc. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Mammoth Pictures Inc. sells to its customers on credit terms of 1/10, net 30. If a customer bought $200,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Mammoth Pictures Inc. get from the customer? $170,000 $160,000 $180,000 $198,000 If the customer paid off the account after 15 days, Mammoth Pictures Inc. would receive Approximately 35% of Mammoth Pictures Inc.'s customers take advantage of the discount and pay on the 10th day. The remaining 65% take an average of 35 days to pay off their accounts. What is Mammoth Pictures Inc.'s days sales outstanding (DSO), or the average collection period? 31.6 days 30.2 days 26.3 days 21.0 days

Answer rating: 100% (QA)

Question 1 2 3 Mammoth get from customer as paid before 10 days if paid after 15 days Days ... View the full answer