Consider the case of the Capel Company. The financial managers at the Capel Company have been monitoring the companys receivables and have compiled the following information:

	All sales are on credit. Capels current terms are 2/10 net 30.
	10% of Capels customers take advantage of the discount.
	Payments from its remaining customers are received, on average, in 53 days.
	Estimated credit sales are $160.000 million annually.
	Variable costs are 82% of gross sales.
	Credit evaluation and collection costs are 10% of gross sales.
	There are no bad debts to consider in this analysis.

Using the preceding information, fill in the blanks in the following analysis:

Credit Analysis
I. General Credit Policy Information
Credit terms	2/10 net 30
Days sales outstanding (DSO) for all customers
DSO for customers who take the discount (10%)	10 days
DSO for customers who forgo the discount (90%)	53 days
II. Annual Credit Sales and Costs ($ millions)
Gross sales	$160.000
Net sales
Amount paid by discount customers
Amount paid by nondiscount customers	$144.000
Variable operating costs (82% of gross sales)	$131.20
Bad debts	$0.00
Credit evaluation and collection costs (10% of gross sales)	$16.00