Question
Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 2/10, net 30. Based on experience, 60 percent of all customers will
Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 2/10, net 30. Based on experience, 60 percent of all customers will take the discount. (Enter your answer as directed, but do not round intermediate calculations.)
Required: (a) What is the average collection period?
Average collection period days
(b) If the company sells 1,360 forecasts every month at a price of $2,460 each, what is its average balance sheet amount in accounts receivable? (Enter your answer in dollars, not millions of dollars (e.g., 1,234,567). Round your answer to 2 decimal places (e.g., 32.16).)
Average accounts receivable $
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