Mace Auto Parts Company sells to retail auto supply stores on credit terms of net 60 Annual credit sales are 300 million spread evenly throughout the year and its accounts average 28 days overdue The firms variable cost ratio is 075 ie variable costs are 75 percent of sales When converting from annual to daily data or vice versa assume there are 365 days per year Determine Maces average collection period by 20 days. Determine the firm's average investment in receivables for next year under these conditions. 

a $98,630

b, $67,068,493 

c. $56,666,667 

d. $55,294118

Answer rating: 100% (QA)

Answer credit terms is Net 60 means customers will generally pay within 60 d... View the full answer