XYZ Company sells on terms of 2/15, net 45. Total credit sales for the year are $750,000. Fifty percent of customers pay on the 15th day and take the discount; the remaining customers pay, on average, 45 days after purchase. What is the firm's Average Collection Period (ACP)? A. 45 days B. 30 days C. 35 days D. 30 days

XYZ Company sells on terms of 2/15, net 45. Total credit sales for the year are $750,000. Fifty percent of customers pay on the 15th day and take the discount; the remaining customers pay, on average, 45 days after purchase. What is the firm's Average Collection Period (ACP)? A. 45 days B. 30 days C. 35 days D. 30 days

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 9P: Grunewald Industries sells on terms of 2/10, net 40. Gross sales last year were 4,562,500 and...

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