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all the steps Accounts receivables. A firm has credit sales of $135,000 yearly with credit terms 50 days that is also the average collection period
all the steps
Accounts receivables. A firm has credit sales of $135,000 yearly with credit terms 50 days that is also the average collection period and no discount for early payment. Now it considers new trade terms of 2/8 net 50 days. The firm finances short-term assets at the bank at a cost of 14.5 percent annually. a. What is the receivables turnover? Number X Round your answer to integer value. b. What would be the incremental decrease in account receivables if the new trade terms are accepted by all customers? S Number Round your answer to two decimals c. What is the opportunity cost of funds? s Number Round your answer to two decimalsStep by Step Solution
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