McEwan Industries sells on terms of

$3/10$

$,$

$$net

$30$

$.$

$$Total sales for the year are $

$1$

$,$

$184$

$,$

$000$

;

$40$

$\%$

$$of the customers pay on the

$10$

th day and take discounts, while the other

$60$

$\%$

$$pay$,$ on average,

$88$

$$days after their purchases. Assume

$365$

$$days in year for your calculations.

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.

$$

$\%$

d

$.$

What is the percentage cost of trade credit to customers who do not take the discount and pay in

$88$

$$days$?$ Round your answers to two decimal places. Do not round intermediate calculations.

Nominal cost:

$\%$

Effective cost:

$\%$

f

$.$

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

$30$

th day? Round your answers to two decimal places. Do not round intermediate calculations.

Days sales outstanding

$($

DSO

$)$

$=$

$$ days

Average receivables

$=$

$$$