Galapagos Garcia, Inc., sells earnings forecasts for Island securities. Its credit terms are 3/10, net 60. Based on experience, 60% of all customers will take the discount.

What is the average collection period for Galapagos Garcia?

___________________ days Points 5

b. If Galapagos Garcia sells 210 forecasts every month at a price of $ 12,000 each, what is its average balance sheet amount in accounts receivable? (Hint: calculate

annual sales then divide by 365 to get daily sales.

$ ________________________ Points: 5