Question
McEwan Industries sells on terms of 3/10, net 30. Total sales for the year are $873,500; 40% of the customers pay on the 10th day
McEwan Industries sells on terms of 3/10, net 30. Total sales for the year are $873,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 52 days after their purchases. Assume 365 days in year for your calculations.
What is the days sales outstanding? Round your answer to two decimal places. days 35.2 Correct answer
What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate calculations. $ 84238.88 Correct answer
What is the percentage cost of trade credit to customers who take the discount? Round your answers to two decimal places. % I need this answer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started