Receivables Investment

Snider Industries sells on terms of $\frac{2}{10},$ net $35.$ Total sales for the year are $$2,000,000.$ Thirty percent of customers pay on the $10$ th day and take

other $70\%$ pay, on average, $40$ days after their purchases. Assume a $365-$day year.

a$.$ What is the days sales outstanding? Do not round intermediate calculations. Round your answer to the nearest whole number.

days

b$.$ What is the average amount of receivables? Do not round intermediate calculations. Round your answer to the nearest dollar.

$

c$.$ What would happen to average receivables if Snider toughened its collection policy with the result that all nondiscount customers paid on the $35$ th day? Do not

round intermediate calculations. Round your answer to the nearest dollar.

$