Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer all parts McDowell Industries selis on terms of 3/10, net 30 . Total sales for the year are $912,500;40% of the customers pay

please answer all parts
image text in transcribed
McDowell Industries selis on terms of 3/10, net 30 . Total sales for the year are $912,500;40% of the customers pay on the 10th day and tak discounts, while the other 60% pay, on average, 40 days after their purchases. a. What is the days' sales outstanding? DSO = days b. What is the average amount of receivables? Average receivables =$ C. What are the (i) nominal and (ii) effective percentage costs of trade credit if customers do not take the discount and pay in 30 days? Nominal cost = d. What are the (i) nominal and (ii) effective percentage costs of trade credit to customers who do not take the discount and pay in 40 days? Nominal cost = % Effective cost = %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions