Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Miyagi Data, Inc., sells earnings forecasts for Japanese securities . Its credit terms are 2 1 0 , net 3 0 . Based on experience,

Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are
210, net 30. Based on experience, 65 percent of all customers will take the discount.
a. What is the average collection period? (Do not round intermediate calculations and
round your answer to 2 decimal places, 32.16.)
b. If the company sells 1,300 forecasts every month at a price of $2,400 each, what is its
average daily balance sheet amount in accounts receivable? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Finance

Authors: Eddie McLaney

11th Edition

1292134402, 9781292134406

More Books

Students also viewed these Finance questions

Question

Is there anything else you would like us to know about you?

Answered: 1 week ago

Question

Does your message use defamatory language?

Answered: 1 week ago