McEwan Industries sellis on terms of 3/10, net 40. Total sales for the year are $1,438,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 50 days after their purchases. Assume 365 days in year for your calculations. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet a. What is the days sales outstanding? Round your answer to two decimal places. days b. What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate calculations. $ c. What is the percentage cost of trade credit to customers who take the discount? Round your answers to two decimal places Receivables investment % d. What is the percentage cost of trade credit to customers who do not take the discount and pay in 50 days? Round your answers to two decimal places. Do not round intermediate calculations. Nominal cost: % Effective cost: % e. What would happen to McEwan's accounts receivable if it toughened up on its collection policy with the result that all nondiscount customers paid on the 40th day? Round your answers to two decimal places. Do not round intermediate calculations. DSO days Average receivables = $ D Receivables Investment Oreal Tems: Discount % Discount period in days) Amount doe in days 3.00% 10 40 51.438 500.00 385 40.00% 60.00 50 Formulas ANA 3 Tatal sales 9 Number of days in year 110 of customers that take discour 11 and pay on discount day 12% of customers that pay afer discount period Average days after purchase 13 by nondiscount customers 1 115. Calculation of Days Sales Outstanding (DSO 16 Days sales outstanding (OSO) 112 ja Calculation of Average Amount of Receivable 19 Avenge receivati 20 21 Cost of Trade Credit 22 Cost to discount Customers 2 Nerminal col to endiscount customers paying liste on Day 24 Offective conto nondiscount customer paying te on Day 25 Calculation of Account Receivables 26 Nondiscount Customers Pald When Due: 2 New days be outstanding to 28 Avengers receivable WNIA 100 50 50 NON ONDA WNIA ANN