Question
Snider Industries sells on terms of 2/10, net 45. Total sales for the year are $1,590,000. 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 $1,590,000. 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.
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started