1.Standard Company sells to retail appliance stores on credit terms of net 30. Annual credit sales are P182,500,000 spread evenly throughout the year, and its accounts average 20 days overdue. The firm's variable cost ratio is 0.70. Determine Standard's average investment in receivables. (Assume 365 days per year in all calculations.)

a.

P15,000,000

b.

P25,000,000

c.

P17,500,000

d.

Cannot be determined from the information provided