Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 3/25, net 50. Based on experience, 80 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 1,340 forecasts every month at a price of $2,440 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.)
Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 3/25, net 50. Based on experience, 80 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 1,340 forecasts every month at a price of $2,440 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.)
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
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Miyagi Data, Inc., sells earnings |
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 1,340 forecasts every month at a price of $2,440 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.) |
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