McEwan Industries sells on terms of 3/10, net 40. Total sales for the year are $1,971,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 80 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.

1. What is the percentage cost of trade credit to customers who do not take the discount and pay in 80 days? Round your answers to two decimal places. Do not round intermediate calculations.

   Nominal cost: %

   Effective cost: %

2. What would happen to McEwans accounts receivable if it toughened up on its collection policy with the result that all non-discount customers paid on the 40th day? Round your answers to two decimal places. Do not round intermediate calculations.

   DSO = days

   Average receivables = $

3. If possible show your work in Excel.