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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
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
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