Maddox Resources has credit sales of $$180,000$ yearly with credit terms of net $30$ days, which is also the average collection period. Maddox does not offer a discount for early payment, so its customers take the full $30$ days to pay. $($Use $365$ days in a year.$)$

a$-1.$ What is the average receivables balance? $($Do not round intermediate calculations. Round the final answer to nearest whole dollar.$)$

Accounts receivable balance $

a$-2.$ What is the receivables turnover? $($Round the final answer to $2$ decimal places.$)$

Receivables turnover x

b$.$ If Maddox offered a $2$ percent discount for payment in $10$ days and every customer took advantage of the new terms, what would the new average receivables balance be$?$ Use the full sales of $$180,000$ for your calculation of receivables. $($Do not round intermediate calculations. Round the final answer to nearest whole dollar.$)$

New receivable balance $

c$-1.$ If Maddox reduces its bank loans, which cost $12$ percent, by the cash generated from reduced receivables, what will be the net gain or loss to the firm? Use the full sales of $$180,000$ for your calculation of receivables. $($Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to nearest whole dollar. Omit $ sign in your response.$)$

Net Change $

c$-2.$ Should Maddox Resources offer the discount?

multiple choice $1$

Yes

No

d$-1.$ Assume the new trade terms of $2/10,$ net $30$ will increase sales by $20$ percent because the discount makes Maddox price competitive. If Maddox earns $16$ percent on sales before discounts, what will be the Net change in income? $($Do not round intermediate calculations. Round the final answer to nearest whole dollar.$)$

Net change in income $

d$-2.$ Should Maddox Resources offer the discount?

multiple choice $2$

Yes

No