5)	RECEIVABLES INVESTMENT
	Snider Industries sells on terms of 2/10, net 45. Total sales for the year are $1,500,000. Thirty percent of customers pay on the 10th day and take discounts; the other 70% pay, on average, 50 days after their purchases.
	a)	What is the DSO?
		DSO =
	b)	What is the average amount of recievables?
		Sales per day = Sales / 365
		Average receivables = Sales per day x DSO
	c)	What would happen to average receivables if Snider toughened its collection policy
		with the result that all non-discount customers paid on the 45th day?
		DSO =
		Sales per day = Sales / 365
		Average receivables = Sales per day x DSO