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Excel Online Structured Activity: Receivables investment McEwan Industries sells on terms of 3/10, net 30. Total sales for the year are $1,463,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 88 days after their purchases. Assume 365 days in year for your calculations. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below Open spreadsheet a. What is the days sales outstandino? Round your answer to two decimal places days b. what is the average amount of receivables? Round lour 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 26 Ned way b. What is the average amount of recevablec? 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 Day in 88 daysRound your awers to two decimal places. Do not round Intermediate calculations. Nominal cost: Effective cost: 96 e. What would happen to McEwan's accounts receivable it it toughened up on its collection policy with the result that all nondiscount customers paid on the 30th day7 Round your answers to two decimal places. Do not round intermediate calculations days DSO Average receivables - Reset Problem Check My Work 60 @ Ix D 3.00% 10 30 $1,463,500.00 365 40.00% A 1 Roceivables investment 2 3 Credit Terms 4 Discount 5 Discount period (in days) Amount duo (in days) 7 8 Total sales Number of days in year 10 % of customers that take discount 11 and pay on discount day 12% of customers that pay after discount period Average days after purchase- 13 by nondiscount customers 14 15 Calculation of Days Sales Outstanding (DSO): 16 Days sales outstanding (DSO) 17 18 Calculation of Average Amount of Receivables: 19 Average receivables 20 21 Cost of Trade Credit: Press 60.00% 88 Formulas WNIA ENIA Is A B C D E Cost of Trade Credit: Cost to discount customers Nominal cost to nondiscount customers paying late on Day Effective cost to nondiscount customers paying late on Day 0.0094 88 88 UNA N/A Calculation of Account Receivables if Nondiscount Customers Paid When Due: New days sales outstanding (DSON) Average receivablesNew #N/A WNIA

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