Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 1/25, net 60. Based
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Question:
Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 1/25, net 60. Based on experience, 60 percent of all customers will take the discount.
a.What is the average collection period?
b.If the company sells 1,260 forecasts every month at a price of $2,360 each, what is its average daily balance sheet amount in accounts receivable?
a.Average collection period days?
b.Average accounts receivable?
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