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1 ) Dunder Mifflin Paper Company sells paper and office supplies. Dunder Mifflin s credit terms are 1 / 1 0 net 3 0 and

1) Dunder Mifflin Paper Company sells paper and office supplies. Dunder Mifflins credit terms are 1/10 net 30 and
has total sales of $75,000,000 and fourty three percent of Dunder Mifflins customers pay on day 10 in order to take the discount. However, the majority of its customers (responsible for fifty three percent of sales) pay 45 days after purchase.
A) What is the EAR for using costly trade credit?
B) What is Dunder Mifflins days sales outstanding?
C) What is Dunder Mifflins average amount of receivables?
D) If the firm increased its collections efforts and was able to get all its customers to pay on day 35 what would its new DSO and average receivables be?

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