10. Larrys Lawn Equipment Company gives terms of 2/10, n/30. Larry has annual credit sales of $500,000 and average accounts receivable of $60,000.

a. What is Larrys accounts receivable turnover?

b. What is Larrys average daily collection?

c. What is the relationship between the terms that Larry is giving and his average daily collection?

If Larry has accounts receivable of $100,000 rather than $60,000:

d. What is Larrys accounts receivable turnover?

e. What is Larrys average collection period?

f. What should Larry do, if anything?