Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. mcewan industries sells on terms of 3/10, net 35.

McEwan Industries sells on terms of 3/10, net 35. Total sales for the year are...

50.1K

Verified Solution

Question

Finance

McEwan Industries sells on terms of 3/10, net 35. Total sales for the year are $1,461,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 50 days after their purchases. Assume 365 days in year for your calculations.

  1. What is the days sales outstanding? Round your answer to two decimal places. days
  3. What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate calculations. $
  5. What is the percentage cost of trade credit to customers who take the discount? Round your answers to two decimal places. %
  7. What is the percentage cost of trade credit to customers who do not take the discount and pay in 50 days? Round your answers to two decimal places. Do not round intermediate calculations.
    Nominal cost: %
    Effective cost: %
  9. What would happen to McEwans accounts receivable if it toughened up on its collection policy with the result that all nondiscount customers paid on the 35th day? Round your answers to two decimal places. Do not round intermediate calculations. Days sales outstanding (DSO) = days Average receivables = $

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

) Statement of the Assignment: Please prepare a comprehensive list of financial ratios . Write a brief...

Biology
1.2K views

In fermentation O NADH reduced O NAD oxidized O NADH oxidized O ethanol oxidized is

Physics
1.2K views

Q 1 In different experiments an ideal gas is expanded through i Isothermal ii Adiabatic...

Basic Math
1.2K views

Given the equation x 2 y 2 6x 10y z 25 0 express it in...

Statistics
1.2K views

A survey of 400 randomly selected high school students determined that 254 play organized sports.(a)...

Calculus
1.2K views

Construct a polynomial function with the following properties fifth degree 1 is a zero of...

Accounting
1.2K views

Expenses are to revenues from the same transaction. (Enter only one...

Accounting
1.2K views

Alaska Corporation purchased, on account, 6,600 pounds of raw materials at $7.50 per pound on...

Accounting
1.2K views

A company factored $49,000 of its accounts receivable and was charged...

Accounting
1.2K views

5.7 What are the five components of managements internal control? Audit and assurance service 7th...

Finance
1.2K views

You are considering an investment in a clothes distributer. The company needs $103,000 today and...

Finance
1.2K views

pls help Despite the growing popularity of the company's new...