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4. Problem 15.05 Click here to read the eBook: The Cash Conversion Cycle RECEIVABLES INVESTMENT...

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4. Problem 15.05 Click here to read the eBook: The Cash Conversion Cycle RECEIVABLES INVESTMENT McEwan Industries sells on terms of 3/10, net 40. Total sales for the year are $1,144,500, 40% of the customers pay on the 10 their purchases. Assume 365 days in year for your calculations. a. What is the days sales outstanding? Round your answer to two decimal places. days day and take discounts, while the other 60% pay, on average, 54 days aher b. What is the average amount of receivables? Round your answer to the nearest cent. Do not round Intermediate calculations. c. What is the percentage cost of trade credit to customers who take the discount? Round your answers to two decimal places d. What is the percentage cost of trade credit to customers who do not take the discount and pay in 54 days? Round your answers to two decimal places. Do not found intermediate calculations. Nominal cost: Effective cost: e. What would happen to McEwan's accounts receivable it is toughened up on its collection porcy with the result that al nondiscount customers paid on the 40 decimal places. Do not round Intermediate calculations. Days sales outstanding (DSO) day? Round your answers to two days Average receivables - $ Continue without saving

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