Problem 15-5 Receivables investment

McDowell Industries sells on terms of 3/10, net 30. Total sales for the year are $1,086,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 56 days after their purchases. Assume 365 days in year for your calculations.

What is the days' sales outstanding? Round your answer to two decimal places. days

What is the average amount of receivables? Round your answer to the nearest cent. $

What is the percentage cost of trade credit to customers who take the discount? Round your answers to two decimal places. %

What is the percentage cost of trade credit to customers who do not take the discount and pay on Day 56? Round your answers to two decimal places. Nominal cost: % Effective cost: %