eBook H Problem Walk-Through Receivables Investment Snider Industries sells on terms of 2/10, net 45. 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, 50 days after their purchases. Assume a 365-day year. a. What is the days sales outstanding? Do not round intermediate calculations. Round your answer to the nearest whole number. $ 38 days b. What is the average amount of receivables? Do not round intermediate calculations. Round your answer to the nearest dollar. $ 52055 c. What would happen to average receivables if Snider toughened its collection policy with the result that all nondiscount customers paid on the 45th day? Do not round intermediate calculations. Round your answer to the nearest dollar. 47206

eBook H Problem Walk-Through Receivables Investment Snider Industries sells on terms of 2/10, net 45. 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, 50 days after their purchases. Assume a 365-day year. a. What is the days sales outstanding? Do not round intermediate calculations. Round your answer to the nearest whole number. $ 38 days b. What is the average amount of receivables? Do not round intermediate calculations. Round your answer to the nearest dollar. $ 52055 c. What would happen to average receivables if Snider toughened its collection policy with the result that all nondiscount customers paid on the 45th day? Do not round intermediate calculations. Round your answer to the nearest dollar. 47206

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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