McDowell Industries on terms of 3/10, net 30. Total sales for the year are $912,500. Forty percent of customers pay on the 10th day and take discounts, the other 60% pay, on average, 40 days after their purchase.,a. What are the days sales outstanding?,b. What is the average of receivables?,c. What would happen to average receivables if McDowell toughened its collection policy with the result that all nondiscount customers paid on the 30th day?,(16.7). Calculate the nominal annual cost of nonfree trade credit under each of the following terms. Assume the payment is made either on the discount date or on the discount or on the due date.,a. 1/15, net 20,b. 2/10, net 60,c. 3/10, net 45,d. 2/10, net 45,e. 2/15, net 40,,,Please use the excel template.
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