+1 4853618276 support@regentessays.com

Drake Paper Company sells on terms of “net 30.” Th e fi rm’s variable cost ratio is 0.80. ,a. If annual credit sales are $20 million and its accounts receivable average 15 days overdue, what is Drake’s investment in receivables?,b. Suppose that, as the result of a recession, annual credit sales decline by 10 percent to $18 million, and customers delay their payments to an average of 25 days past the due date. What will be Drake’s new level of receivables investment?,

Order Your Custom Essay
Order Your Custom Essay