What is the companys average accounts receivable

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Receivables Investment

Question 1: Medwig Corporation has a DSO of 30 days. The company averages $8,000 in sales each day (all customers take credit). What is the company's average accounts receivable? Round your answer to the nearest dollar.

Cost of Trade Credit

Question 2: A large retailer obtains merchandise under the credit terms of 1/10, net 35, but routinely takes 65 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's effective cost of trade credit? Assume 365 days in year for your calculations. Do not round intermediate calculations. Round your answer to two decimal places.

 

Reference no: EM132495596

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What is the companys average accounts receivable : The company averages $8,000 in sales each day (all customers take credit). What is the company's average accounts receivable?
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