1) Suppose a firm purchases goods on credit terms of 3/10, net 15, and the firm always takes discounts. The cost of using the funds for six days is:

a.3.09%.

b.3.92%.

c.3.00%.

d.0%.

e.4.18%.

2) The aging schedule of a firm shows that 40% of the receivables are collected in 18 days and the remaining 60% of the receivables are collected in 50 days. The days sales outstanding (DSO) of the firm is _____.

a.12.32 days

b.12.78 days

c.20.34 days

d.40.56 days

e.37.20 days