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Receivables Investment
Snider Industries sells on terms of 2/10, net 35. Total sales for the year are $1,400,000. Thirty percent of customers pay on the 10th day and take discounts; the other 70% pay, on average, 40 days after their purchases. Assume a 365-day year.
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What is the days sales outstanding? Do not round intermediate calculations. Round your answer to the nearest whole number.
days
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What is the average amount of receivables? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
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What would happen to average receivables if Snider toughened its collection policy with the result that all nondiscount customers paid on the 35th day? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
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- If a firm has sales of $21,764,000 a year, and the average collection period for the industry is 55 days, what should this firm’s accounts receivable be if the firm is comparable to the industry? Assume there are 365 days in a year. Do not round intermediate calculations. Round your answer to the nearest dollar.arrow_forwardProvide answer for this questionarrow_forwardReceivables Investment Snider Industries sells on terms of 2/10, net 25. Total sales for the year are $500,000. Thirty percent of customers pay on the 10th day and take discounts; the other 70% pay, on average, 30 days after their purchases. Assume a 365-day year. What is the days sales outstanding? Do not round intermediate calculations. Round your answer to the nearest whole number. days What is the average amount of receivables? Do not round intermediate calculations. Round your answer to the nearest dollar. $ What would happen to average receivables if Snider toughened its collection policy with the result that all nondiscount customers paid on the 25th day? Do not round intermediate calculations. Round your answer to the nearest dollar. $arrow_forward
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