McEwan Industries sells on terms of $\frac{3}{10},$ net $20.$ Total sales for the year are $$1,363,500$;$40\%$ 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. 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.

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.

$\%$

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:

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 $20$th day? Round your answers to two decimal places. Do not

round intermediate calculations.

DSO$=$

days