Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit tem 3/20, net 40. Based on experience, 65 percent of all customers will take the disca a. What is the average collection period? (Do not round intermediate calculation round your answer to 2 decimal places, 32.16.) b. If the company sells 1,250 forecasts every month at a price of $2,350 each, wh. average daily balance sheet amount in accounts receivable? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 3 Answer is complete but not entirely correct. a. b. Average collection period Average accounts receivable 17 days 1,542,575.34

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are
3/20, net 40. Based on experience, 65 percent of all customers will take the discount.
a. What is the average collection period? (Do not round intermediate calculations and
round your answer to 2 decimal places, 32.16.)
b. If the company sells 1,250 forecasts every month at a price of $2,350 each, what is its
average daily balance sheet amount in accounts receivable? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer is complete but not entirely correct.
a.
Average collection period
b. Average accounts receivable)
$
17 days
1,542,575.34
Transcribed Image Text:Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 3/20, net 40. Based on experience, 65 percent of all customers will take the discount. a. What is the average collection period? (Do not round intermediate calculations and round your answer to 2 decimal places, 32.16.) b. If the company sells 1,250 forecasts every month at a price of $2,350 each, what is its average daily balance sheet amount in accounts receivable? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a. Average collection period b. Average accounts receivable) $ 17 days 1,542,575.34
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