7.4 Milwaukee Surgical Supplies Inc. sells on terms of 3/10, net 30. That means customers that pay in ten days get a 3 percent discount on their purchases, while customers that do not take the discount must pay in 30 days. Gross sales (sales before any discounts taken) for the year are $1,20o,o00; the collections department estimates that 30 percent (by dollar value) of the customers pay on the tenth day and take discounts, 40 percent pay on the thirtieth day, and the remaining 30 percent pay, on average, on the fortieth day after the purchase. (Assume 360 days per year) a. What is the firm's average collection period? b. What is the firm's current receivables balance