The minimum financial strength a customer must have to be granted credit is indicated by the company's Consider the case of Newtown Co.: Newtown Co. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Newtown Co. sells to its customers on credit terms of 1/10, net 30. If a customer bought $100,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Newtown Co. get from the customer? $99,000 $105,000 $100,000 $87,500 If the customer paid off the account after 15 days, Newtown Co. would receive Approximately 40% of Newtown Co.'s customers take advantage of the discount and pay on the 10th day. The remaining 60% take an average of 35 days to pay off their accounts. What is Newtown Co.'s days sales outstanding (DSO), or the average collection period? 28.75 days 20.00 days 26.25 days