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IcEwan Industries sells on terms of 3/10, net 25 . Total sales for the year are $1,753,500;40% of the customers pay on the 10 th
IcEwan Industries sells on terms of 3/10, net 25 . Total sales for the year are $1,753,500;40% of the customers pay on the 10 th day and take discounts; while the other 60% F on average, 50 days after their purchases. Assume 365 days in year for your calculations. a. What is the davs sales outstanding? Round your answer to two decimal places. days. b. What is the average amount of receivables? Do not round intermediate calculations. Round your answer to the nearest cent. 5 c. What is the aercentape cost of trade credt to custement who take the discount? If your answer is zero, enter zero. Round your answer to two decimal places. d. What is the percentage cost of trade credit to customers who do not take the discount and pay in 50 days? If your answer is zero, enter zero. Do not round intermediate caloulations. Rovind vour answens to two decimal places. Nominal cost: Effective cost e. What would happen to Mckwan's accounts receivable if it toughened up on its collection policy with the result that all nondiscount customers paid on the 25 th day? Do not round intermedate calculations. Round vour answer for Dso to two dedimsi places and for average receivables to the nearest cent. bays sales outstanding (0S0) s days Average receivables: 5
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