1) For the year just ended, James' Drafting Supplies had average accounts receivable of $880,000 and total credit sales of $4,800,000. Throughout the year, a factor purchased accounts receivable from the firm at a 2% discount. If the firm wishes to get its factoring costs below 11%, what is the MAXIMUM days in receivables it can have? A. 67 days B. 70 days C. 72 days D. 75 days E. 87 days

2) Jumbotron Inc. had sales of $8,000 in November, $14,000 in December, and projects

sales of $10,000 for January, $12,000 for February, and $8,000 for March. The firm's cost of

goods sold every month is equal to 70% of the next month's sales. The firm collects its

receivables in 60 days and pays its payables in 30 days. The firm begins January 1 with

$10,000 in cash. All sales and purchases are on credit.

What is Jumbotron's accounts receivable at the end of January?

A. $10,000

B. $14,000

C. $22,000

D. $24,000

E. $32,000

Please elaborate the qsns