Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 4. problem 15.05 click here to read the ebook: the

4. Problem 15.05 Click here to read the eBook: The Cash Conversion Cycle RECEIVABLES INVESTMENT...

70.2K

Verified Solution

Question

Finance

image
4. Problem 15.05 Click here to read the eBook: The Cash Conversion Cycle RECEIVABLES INVESTMENT McEwan Industries sells on terms of 3/10, net 40. Total sales for the year are $1,144,500, 40% of the customers pay on the 10 their purchases. Assume 365 days in year for your calculations. a. What is the days sales outstanding? Round your answer to two decimal places. days day and take discounts, while the other 60% pay, on average, 54 days aher b. What is the average amount of receivables? Round your answer to the nearest cent. Do not round Intermediate calculations. c. What is the percentage cost of trade credit to customers who take the discount? Round your answers to two decimal places d. What is the percentage cost of trade credit to customers who do not take the discount and pay in 54 days? Round your answers to two decimal places. Do not found intermediate calculations. Nominal cost: Effective cost: e. What would happen to McEwan's accounts receivable it is toughened up on its collection porcy with the result that al nondiscount customers paid on the 40 decimal places. Do not round Intermediate calculations. Days sales outstanding (DSO) day? Round your answers to two days Average receivables - $ Continue without saving

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Gitano Products operates a job-order costing system and appliesoverhead cost to jobs on the...

Accounting
Q

Based off these compounds, which one is the most hazardous and why? Methyl Benzoate Acetanilide Nitric Acid (70%) Acetic acid Sulfuric...

Chemistry
Q

Two parts of a machine are held together by eight equally-spaced M6x1.0 grade 5.8 bolts that...

Mechanical Engineering
Q

Newborns are deficient in what fat-soluble vitamin which is important for proper blood clotting?Vitamin KVitamin...

Biology
Q

After the amount due on a sale of 46 600 terms n eom is received...

Basic Math
Q

x y Need Help 7 1 Points x y Read It Find the rectangular coordinates...

Basic Math
Q

18 Brown tree snakes are an invasive species causing huge environmental and financial damage in...

Statistics
Q

Northland Cale I Ch 4 1 4 6 Assessment Linear Approximation Related Rates Graphing Name...

Calculus
Q

etermine whether the following statements are true and give an explanation or counter example Complete...

Calculus
Q

1 Using a graph find all the roots of the quadratic x 4x 1 rounding...

Algebra
Q

Lane manufactures high-quality speakers. Suppose Lane is considering a new quality program: (Click...

Accounting
Q

The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for...

Accounting