Sway Tailors currently has credit terms of net 30, an average collection period of 29 days, and average receivables of $211,410. The firm estimates that if it offered terms of 2/10, net 30 that 45 percent of its customers would pay on Day 10 with the remainder paying on average in 32 days. How much cash could the company free up from its accounts receivables if it switched its credit policy?

Answer rating: 100% (QA)

To determine how much cash Sway Tailors could free up from its accounts receivables by switching its ... View the full answer