# fm22 6 - c 35 5 36 97 3 × = 32.25 d 35 5 36 98 2 × =...

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22-6 a. 0.4(10) + 0.6(40) = 28 days. b. \$912,500/365 = \$2,500 sales per day. \$2,500(28) = \$70,000 = Average receivables. c. 0.4(10) + 0.6(30) = 22 days. \$912,500/365 = \$2,500 sales per day. \$2,500(22) = \$55,000 = Average receivables. Sales may also decline as a result of the tighter credit. This would further reduce receivables. Also, some customers may now take discounts further reducing receivables. 22-7 a. 5 5 36 99 1 × = 73.74%. b. 50 5 36 98 2 × = 14.90%.
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Unformatted text preview: c. 35 5 36 97 3 × = 32.25%. d. 35 5 36 98 2 × = 21.28%. e. 25 5 36 98 2 × = 29.80%. 22-8 a. 20-45 5 36 97 3 × = 45.15%. Because the firm still takes the discount on Day 20, 20 is used as the discount period in calculating the cost of nonfree trade credit. b. Paying after the discount period, but still taking the discount gives the firm more credit than it would receive if it paid within 15 days. Answers and Solutions: 22 - 6...
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