016 D A B 3.00% 10 40 $1,862,500.00 365 1 Receivables investment 2 3 Credit Terms 4 Discount % 15 Discount period (in days) 6 Amount due (in days) 17 8 Total sales 9 Number of days in year 10 % of customers that take discount 11 and pay on discount day 12 % of customers that pay after discount period Average days after purchase 13 by nondiscount customers 114 15 Calculation of Days Sales Outstanding (DSO): 16 Days sales outstanding (DSO) 40.00% 60.00% 84 - Calculation of Average Amount of Receivables: 19 Average receivables 0.000 Cost of Trade Credit Cost to discount customers Nominal cost to nondiscount customers paying late on Day Effective cost to nondiscount customers paying late on Day 94 84 15 Calculation of Days Sales Outstanding (DSO): 16 Days sales outstanding (DSO) 18 Calculation of Average Amount of Receivables: 19 Average receivables 20 21 Cost of Trade Credit 22 Cost to discount customers 23 Nominal cost to nondiscount customers paying late on Day 24 Effective cost to nondiscount customers paying late on Day 0.00% 84 84 25 Calculation of Account Receivables if 26 Nondiscount Customers Paid When Due: 27. New days sales outstanding (DSONew) 28 Average receivablesNew 29 130 McEwan Industries sells on terms of 3/10, net 40. Total sales for the year are $1,862,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 84 days after their purchases. Assume 365 days in year for your calculations. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below