9. Browny sells to retail appliance stores on credit terms of net 30. Annual credit sales is P27.000,000 spread evenly throughout the year and its accounts average 20 days overdue. The firm's variable cost ratio is 0.70. Determine Browny's average investment in receivables. Assume 360 days in a year. a. P1,500,000 b. P2,250,000 c. P 3,750,000 d. cannot be determined from the information provided

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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9. Browny sells to retail appliance stores on credit terms of net 30. Annual credit sales is
P27.000,000 spread evenly throughout the year and its accounts average 20 days overdue.
The firm's variable cost ratio is 0.70. Determine Browny's average investment in receivables.
Assume 360 days in a year.
a. P1,500,000
b. P2,250,000
c. P3,750,000
d. cannor be determined from the information provided
Transcribed Image Text:9. Browny sells to retail appliance stores on credit terms of net 30. Annual credit sales is P27.000,000 spread evenly throughout the year and its accounts average 20 days overdue. The firm's variable cost ratio is 0.70. Determine Browny's average investment in receivables. Assume 360 days in a year. a. P1,500,000 b. P2,250,000 c. P3,750,000 d. cannor be determined from the information provided
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