Problem 16-06 Receivables Investment Snider Industries sells on terms of 3/10, net 35. Total sales for the year...

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Finance

Problem 16-06
Receivables Investment
Snider Industries sells on terms of 3/10, net 35. Total salesfor the year are $1,800,000. Thirty percent of customers pay on the10th day and take discounts; the other 70% pay, on average, 40 daysafter their purchases. Assume 365 days in year for yourcalculations.***Please show work via excel
What is the days sales outstanding? Round your answer to onedecimal place.
days
What is the average amount of receivables? Round your answer tothe nearest dollar. Do not round intermediate calculations.
$
What would happen to average receivables if Snider toughenedits collection policy with the result that all nondiscountcustomers paid on the 35th day? Round your answer to the nearestdollar. Do not round intermediate calculations.
$

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Problem 16-06Receivables InvestmentSnider Industries sells on terms of 3/10, net 35. Total salesfor the year are $1,800,000. Thirty percent of customers pay on the10th day and take discounts; the other 70% pay, on average, 40 daysafter their purchases. Assume 365 days in year for yourcalculations.***Please show work via excelWhat is the days sales outstanding? Round your answer to onedecimal place.daysWhat is the average amount of receivables? Round your answer tothe nearest dollar. Do not round intermediate calculations.$ What would happen to average receivables if Snider toughenedits collection policy with the result that all nondiscountcustomers paid on the 35th day? Round your answer to the nearestdollar. Do not round intermediate calculations.$