Receivables Investment

Snider Industries sells on terms of 2/10, net 35. Total sales for the year are $600,000. Thirty percent of customers pay en the 10th day and take disceunts; the 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 doliar: . c. What would the new days sales outstanding and average receivables be if Snider toughened its collection poller with the result that alf nondiscount customers paid on the 35 th day? Do not round intermediate calculations. Round your answer for the new days saies oubstinding to one decimal plitce and for the average receivables to the nesrest dollar. Dso: days Average receivables: 5