Receivables investment-what is the days sale outstanding

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Reference no: EM13809170

Receivables Investment

Snider Industries sells on terms of 3/10, net 30. Total sales for the year are $1,516,000. Thirty percent of the customers pay on the 10th day and take discounts; the other 70% pay, on average, 48 days after their purchases. Assume 365 days in year for your calculations.

What is the day’s sale outstanding? Round your answer to one decimal place

days

What is the average amount of receivables? Round your answer to the nearest dollar

What would happen to average receivables if Snider toughened up on its collection policy with the result that all non discount customers paid on the 30th day? Round your answer to the nearest dollar.

Reference no: EM13809170

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