Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 1/10, net 50. Based on experience, 70 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 1,320 forecasts every month at a price of $2,420 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.) a. Average collection period b. Average accounts receivable days
Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 1/10, net 50. Based on experience, 70 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 1,320 forecasts every month at a price of $2,420 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.) a. Average collection period b. Average accounts receivable days
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
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are
1/10, net 50. Based on experience, 70 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 1,320 forecasts every month at a price of $2,420 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.)
a. Average collection period
b. Average accounts receivable
days
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