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please help me with this one Maddox Resources has credit sales of $197,000 yearly with credit terms of net 30 days, which is also the
please help me with this one
Maddox Resources has credit sales of $197,000 yearly with credit terms of net 30 days, which is also the average collection period. Maddox does not ofler a discount for early payment, so its customers take the full 30 days to pay. (Use 365 days in a year.) a-1. What is the average recelvables balance? (Do not round intermediate calculations, Round the final answer to nearest whole dolles) Accounts receivable balance $ a-2. What is the receivables turnover? (Round the firal answer to 2 decimal places.) Poceivabtes tirmover b. If Moddor offered o 3 percent discount for payment in 10 days and every customer took advantage of the new terms, what would the new averoge receivables balance be? Use the full sales of $197,000 for your calculation of receivables. (Do not reund inireinediale calculations. Round the final answer to nearest whole dottaci) New receivable balarice 5 c-4. If Maddor reduces its bank loans, which cost 15 percent, by the cash generated from reduced receivables, what will be the in gain or loss to the firm? Use the full sales of $197,000 for your calculation of receivables. (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the finat answer to nearest whole dollar, Omit $ sign in your response.) Net Change 5 c-2. Should Maddox Resources offer the discount? Yes No d-1. Assume the new trade terms of 3/10, net 30 will increase sales by 24 percent because the discount makes Maddox price competitive if Maddox earns 15 percent on sales before discounts, what will be the Net change in income? (Do not round intermediate calculations. Round the final answer to nearest whole dollar.) Net change in income: $ d-2. Should Moddox Resourees offer the discount? Yes No Step by Step Solution
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