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15-15 Yusit Furniture's (YF) annual sales currently are $192,000, all of which are on credit. YF's credit terms are net 20, and accounts receivable normally

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15-15 Yusit Furniture's (YF) annual sales currently are $192,000, all of which are on credit. YF's credit terms are net 20, and accounts receivable normally equal $16,000. YF plans to change the credit terms to net 35, which would be more in line with industry standards. If the credit terms are changed, YF expects sales to increase to $210,000 and the average accounts receivable balance to increase to $26,250. How will the change in credit terms affects YF's days sales outstanding (DSO)? (LO 15-4) 15-19 Steve's Signature Sails (SSS) sells 200,000 jib assemblies annually. Each assembly costs $750 to purchase, inventory carrying costs are 25 percent of the purchase price, and the cost of placing an order with SSS's supplier is $1,200. (a) What is the EOQ? (b) What is the total inventory cost at the EOQ level? (LO 15-5)

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