3. 16-4: The Cash Conversion Cycle Receivables investment McDowell Industries sells on terms of 3/10, net 40. Total sales for the year customers pay on the 10th day and take discounts, while the other their purchases. Assume 365 days in year for your calculations. are $1,446,500; 40% of the 60% pay, on average, 60 days after a a. What is the days' sales outstanding? Round your answer to two d days b. What is the average amount of receivables? Round your answer to the nearest cent. What is the percentage cost of trade credit to customers who take the discoun answers to two decimal places. c. t? Round your What is the percentage cost of trade credit to customers who do not take the di Day 60? Round your answers to two decimal places. Nominal cost: d. scount and pay on Effective cost: happen to McDowell's accounts receivables if McDowell toughened up on its collection answers to e. What would policy with the result that all nondiscount customers paid on the 40th day? Round your two decimal places. days Average receivables