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Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 1/10, net 30. Based on experience, 65 percent of all customers will
Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 1/10, 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 the nearest whole number, e.g., 32.) |
b. | If the company sells 1,100 forecasts every month at a price of $1,950 each, what is its average balance sheet amount in accounts receivable? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.) |
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