McEwan Industries sells on terms of 3 / 1 0 , net 2 0 . Total sales
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Question:
McEwan Industries sells on terms of net Total sales for the year are $; of the customers pay on the th day and take discounts, while the other pay, on average, days after their purchases. Assume days in year for your calculations.
What is the days sales outstanding? Round your answer to two decimal places.
days
What is the average amount of receivables? Do not round intermediate calculations. Round your answer to the nearest cent.
$
What is the percentage cost of trade credit to customers who take the discount? If your answer is zero, enter zero. Round your answer to two decimal places.
What is the percentage cost of trade credit to customers who do not take the discount and pay in days? If your answer is zero, enter zero. Do not round intermediate calculations. Round your answers to two decimal places.
Nominal cost:
Effective cost:
What would happen to McEwans accounts receivable if it toughened up on its collection policy with the result that all nondiscount customers paid on the th day? Do not round intermediate calculations. Round your answer for DSO to two decimal places and for average receivables to the nearest cent.
Days sales outstanding DSO:
days
Average receivables: $
Posted Date: