Question
RECEIVABLES INVESTMENT McDowell Industries sells on terms of 3/10, net 30. Total sales for the year are $912,500; 40% of the customers pay on the
RECEIVABLES INVESTMENT
McDowell Industries sells 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 take discounts,
while the other 60% pay, on average, 40 days after their purchases.
a. What is the dayssales outstanding?
b. What is the average amount of receivables?
c. What is the percentage cost of trade credit to customers who take the discount?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th International Edition
1259094901, 9781259094903
