McEwan Industries sells on terms of 3/10, net 20. Total sales for the year are $853,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 78 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

What is the days sales outstanding? Round your answer to two decimal places.

fill in the blank 2 days

What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate calculations.

$ fill in the blank 3

What is the percentage cost of trade credit to customers who take the discount? Round your answers to two decimal places.

fill in the blank 4%

What is the percentage cost of trade credit to customers who do not take the discount and pay in 78 days? Round your answers to two decimal places. Do not round intermediate calculations.

Nominal cost: fill in the blank 5%

Effective cost: fill in the blank 6%

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 20th day? Round your answers to two decimal places. Do not round intermediate calculations.

DSO = fill in the blank 7 days

Average receivables = $ fill in the blank 8