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Please reply fast and show warking. Sweet Shop has credit sales of $450,000 yearly with customers paying on average in 70 days. Sweet Shop does
Please reply fast and show warking.
Sweet Shop has credit sales of $450,000 yearly with customers paying on average in 70 days. Sweet Shop does not currently offer a discount for early payment. Required: a. What is the average receivables balance? b. Assume Sweet Shop offers new trade terms of 2/10, Net 30. All customers take the discount and pay in 10 days, and sales increase by 18 percent as a result of this discount incentive. If Sweet Shop earns 20 percent on sales (before discounts) and can reduce their 4% bank loan due to the early payments, should they offer these new discount terms? Support your answer with all relevant calculations. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I S Paragraph Arial 14px TE %D0Q 3 3 X2 X2 & & T Te TT 99 92 | (:) elete row RSC 1 HA H P O WORDS POWERED BY TINYStep by Step Solution
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