11. Trade Credit and Receivables. A firm offers terms of 3/15, net 30. Currently, two-thirds of all customers take advantage of the trade discount; the remainder pay bills at the due date. (LO2)

a. What will be the firm's typical value for its accounts receivable period? (See Chapter 19, Section 19.2, for a review of the accounts receivable period.)

b. What is the average investment in accounts receivable if annual sales are $20 million?

c. What would likely happen to the firm's accounts receivable period if it changed its terms to 4/15, net 30?