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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
Dunder Mifflin Paper Company sells paper and office supplies. Dunder Mifflins credit terms are net and
has total sales of $ and fourty three percent of Dunder Mifflins customers pay on day in order to take the discount. However, the majority of its customers responsible for fifty three percent of sales pay 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 what would its new DSO and average receivables be
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