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McEwan Industries sells on terms of 3 / 1 0 , net 2 5 . Total sales for the year are $ 1 , 8
McEwan Industries sells on terms of net Total sales for the year are $; of the customers pay on the th day and take discounts, while the other pay, on average, days after their purchases. Assume days in year for your calculations. What is the days sales outstanding? Round your answer to two decimal places. days What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate calculations. $ What is the percentage cost of trade credit to customers who take the discount? Round your answers to two decimal places. What is the percentage cost of trade credit to customers who do not take the discount and pay in days? Round your answers to two decimal places. Do not round intermediate calculations. Nominal cost: Effective cost: What would happen to McEwans accounts receivable if it toughened up on its collection policy with the result that all nondiscount customers paid on the th day? Round your answers to two decimal places. Do not round intermediate calculations. Days sales outstanding DSO days Average receivables $RECEIVABLES INVESTMENT McEwan Industries sells on terms of net Total sales for the year are $; of the customers pay on the day and take discounts, while the other pay, on average, days after their purchases. Assume 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 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 day? Round your answers to two decimal places. Do not round intermediate calculations. Days sales outstanding DSO days Average receivables $
McEwan Industries sells on terms of net Total sales for the year are $; of the customers pay on the th day and take discounts, while the other pay, on average, days after their purchases. Assume days in year for your calculations.
What is the days sales outstanding? Round your answer to two decimal places.
days
What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate calculations.
$
What is the percentage cost of trade credit to customers who take the discount? Round your answers to two decimal places.
What is the percentage cost of trade credit to customers who do not take the discount and pay in days? Round your answers to two decimal places. Do not round intermediate calculations.
Nominal cost:
Effective cost:
What would happen to McEwans accounts receivable if it toughened up on its collection policy with the result that all nondiscount customers paid on the th day? Round your answers to two decimal places. Do not round intermediate calculations.
Days sales outstanding DSO days
Average receivables $RECEIVABLES INVESTMENT
McEwan Industries sells on terms of net Total sales for the year are $; of the customers pay on the day and take discounts, while the other pay, on
average, days after their purchases. Assume 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 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 day? Round your
answers to two decimal places. Do not round intermediate calculations.
Days sales outstanding DSO
days
Average receivables $
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