Snider Industries sells on terms of 3/10, net 45. Total salesfor the year are $520,000. Thirty percent of customers pay on the10th day and take discounts; the other 70% pay, on average, 50 daysafter their purchases. Assume 365 days in year for yourcalculations.
- What is the days sales outstanding? Round your answer to onedecimal place.
- What is the average amount of receivables? Round your answer tothe nearest dollar. Do not round intermediatecalculations.
- What would happen to average receivables if Snider toughenedits collection policy with the result that all nondiscountcustomers paid on the 45th day? Round your answer to the nearestdollar. Do not round intermediate calculations.
