2. Your receivables in June from the previous month are $22,920. The collections in July from the two previous months are $20,320. What are your receivables in July for the two previous months?
3. Stony Products has a receivables turnover of ten times. What is Stony’s receivables collection period (RCP)?
4. A firm currently uses credit terms of net 35 with no discounts allowed. It has sales of $2M (M = million), cost of sales (at t = 0) of $1.3M. On average, 98% of customers pay in 2 months, while 2% of customers never pay. At a required return of 1% per month, what is the NPV of one year’s sales under the current policy
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