Accounts Payable

A chain of appliance stores, APP Corporation, purchases inventory with a net price of $250,000 each day. The company purchases the inventory under the credit terms of 1/15, net 35. APP always takes the discount but takes the full 15 days to pay its bills. What is the average accounts payable for APP? Round your answer to the nearest dollar.

$

Receivables Investment

Snider Industries sells on terms of 2/10, net 35. Total sales for the year are $1,400,000. Thirty percent of customers pay on the 10th day and take discounts; the other 70% pay, on average, 40 days after their purchases. Assume a 365-day year.

What is the days sales outstanding? Do not round intermediate calculations. Round your answer to the nearest whole number.

days

What is the average amount of receivables? Do not round intermediate calculations. Round your answer to the nearest dollar.

$

What would happen to average receivables if Snider toughened its collection policy with the result that all nondiscount customers paid on the 35th day? Do not round intermediate calculations. Round your answer to the nearest dollar.

$