Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Snider Industries sells on terms of 2/10, net 45. Total sales for the year are $1,200,000. Thirty percent of customers pay on the 10th day

Snider Industries sells on terms of 2/10, net 45. Total sales for the year are $1,200,000. Thirty percent of customers pay on the 10th day and take discounts; the other 70% pay, on average, 50 days after their purchases. Assume a 365-day year.

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

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

What would happen to average receivables if Snider toughened its collection policy with the result that all nondiscount customers paid on the 45th day? Do not round intermediate calculations. Round your answer to the nearest dollar.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Market Regulations And Finance

Authors: Ratan Khasnabis, Indrani Chakraborty

2014th Edition

8132217942, 978-8132217947

More Books

Students also viewed these Finance questions

Question

Define Administration?

Answered: 1 week ago

Question

4. Explain the strengths and weaknesses of each approach.

Answered: 1 week ago

Question

3. Identify the methods used within each of the three approaches.

Answered: 1 week ago