McEwan Industries sells on terms of 3/10, net 40. Total sales for the year are $1,292,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 74 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.

• 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%

Receivables investment
Credit Terms:
Discount %		3.00%
Discount period (in days)		10
Amount due (in days)		40
Total sales		$1,292,500.00
Number of days in year		365
"% of customers that take discount and pay on discount day"		40.00%
% of customers that pay after discount period		60.00%
"Average days after purchase by nondiscount customers"		74
Calculation of Days Sales Outstanding (DSO):				Formulas
Days sales outstanding (DSO)				#N/A
Calculation of Average Amount of Receivables:
Average receivables				#N/A
Cost of Trade Credit:
Cost to discount customers		0.00%
Nominal cost to nondiscount customers paying late on Day	74			#N/A
Effective cost to nondiscount customers paying late on Day	74			#N/A
"Calculation of Account Receivables if Nondiscount Customers Paid When Due:"
New days sales outstanding (DSONew)				#N/A
Average receivablesNew				#N/A