Milwauke Surgical Supplies has gross sales for the year 1,200,000. the collection department estimates that 30 percent of the customers pay on the tenth day, 40 percent pay on the 30theth day and the remaining 30 percent pay on average on the 40thenth day after the purchase, (Assume 360 day).

As an advisor to the firm, obtain these responses and analyze what it means.

a) what is the firm's average collection period

b) What is the firm's current receivable balance

c) what would be the firm's new receivables balance be if Milwaukee Surgical toughen up on its collection policy ...