Question

Receivables Investment

Snider Industries sells on terms of 3/10, net 25. Total sales for the year are $990,000. Thirty percent of customers pay on the 10th day and take discounts; the other 70% pay, on average, 30 days after their purchases. Assume 365 days in year for your calculations.

What is the days sales outstanding? Round your answer to one
decimal place. _____ days

What is the average amount of receivables? Round your answer to
the nearest dollar. Do not round intermediate
calculations.

What would happen to average receivables if Snider toughened its
collection policy with the result that all nondiscount customers
paid on the 25th day? Round your answer to the nearest dollar. Do
not round intermediate calculations.

Answer #1

Solution.

What is the days sales outstanding?

Account receivable / (Total credit sales / Number of day's)

DSO = (30%x10) + (70% x 30)

DSO = 3 + 21 = 24 Days.

**What is the average amount of receivables?.**

Account receivable = (DSO x sales) / 365

= (24 x $990,000) / 365

= $65,095.89.

**What would happen to average receivables if Snider
toughened its collection policy with the result that all
nondiscount customers paid on the 25th day?**

Updated days of sales outstanding =

DSO = (30%x10) + (70% x 25)

DSO = 3 + 17.5 = 20.5 Days.

**Account receivable = (DSO x sales) / 365**

= (20.5 x $990,000) / 365

= $55,602.74.

Due to it account receivable will be reduced by $9,493.15.

Receivables Investment
Snider Industries sells on terms of 2/10, net 25. Total sales
for the year are $850,000. Thirty percent of customers pay on the
10th day and take discounts; the other 70% pay, on average, 30 days
after their purchases. Assume a 365-day year.
What is the days sales outstanding? Do not round intermediate
calculations. Round your answer to the nearest whole number.
days
What is the average amount of receivables? Do not round
intermediate calculations. Round your answer...

Receivables Investment
Snider Industries sells on terms of 2/10, net 45. Total sales
for the year are $1,200,000. Thirty percent of customers pay on the
10th day and take discounts; the other 70% pay, on average, 50 days
after their purchases. Assume a 365-day year.
What is the days sales outstanding? Do not round intermediate
calculations. Round your answer to the nearest whole number.
days
What is the average amount of receivables? Do not round
intermediate calculations. Round your answer...

Receivables Investment
Snider Industries sells on terms of 2/10, net 45. Total sales
for the year are $1,400,000. Thirty percent of customers pay on the
10th day and take discounts; the other 70% pay, on average, 50 days
after their purchases. Assume a 365-day year.
What is the days sales outstanding? Do not round intermediate
calculations. Round your answer to the nearest whole number.
days
What is the average amount of receivables? Do not round
intermediate calculations. Round your answer...

Receivables Investment
Snider Industries sells on terms of 2/10, net 35. Total sales
for the year are $600,000. Thirty percent of customers pay on the
10th day and take discounts; the other 70% pay, on average, 40 days
after their purchases. Assume a 365-day year.
What is the days sales outstanding? Do not round intermediate
calculations. Round your answer to the nearest whole number.
days
What is the average amount of receivables? Do not round
intermediate calculations. Round your answer...

Receivables Investment
Snider Industries sells on terms of 2/10, net 45. Total sales
for the year are $1,100,000. Thirty percent of customers pay on the
10th day and take discounts; the other 70% pay, on average, 50 days
after their purchases. Assume a 365-day year.
What is the days sales outstanding? Do not round intermediate
calculations. Round your answer to the nearest whole number.
days
What is the average amount of receivables? Do not round
intermediate calculations. Round your answer...

Problem 16-06
Receivables Investment
Snider Industries sells on terms of 3/10, net 35. Total sales
for the year are $1,660,000. Thirty percent of customers pay on the
10th day and take discounts; the other 70% pay, on average, 40 days
after their purchases. Assume 365 days in year for your
calculations.
What is the days sales outstanding? Round your answer to one
decimal place.
days
What is the average amount of receivables? Round your answer to
the nearest dollar. Do...

Problem 16-06
Receivables Investment
Snider Industries sells on terms of 3/10, net 35. Total sales
for the year are $960,000. Thirty percent of customers pay on the
10th day and take discounts; the other 70% pay, on average, 40 days
after their purchases. Assume 365 days in year for your
calculations.
What is the days sales outstanding? Round your answer to one
decimal place.
days
What is the average amount of receivables? Round your answer to
the nearest dollar. Do...

Snider Industries sells on terms of 3/10, net 35. Total sales
for the year are $1,902,500. Thirty percent of the customers pay on
the 10th day and take discounts; the other 70% pay, on average, 54
days after their purchases. Assume 365 days in year for your
calculations.
A) What is the days sales outstanding? Round your answer to one
decimal place.
B) What is the average amount of receivables? Round your answer
to the nearest dollar.
C) What would...

Snider Industries sells on terms of 2/10, net 35. Total sales
for the year are $1,700,000. Thirty percent of customers pay on the
10th day and take discounts; the other 70% pay, on average, 40 days
after their purchases. Assume a 365-day year.
What would happen to average receivables if Snider toughened its
collection policy with the result that all non-discount customers
paid on the 35th day? Do not round intermediate calculations. Round
your answer to the nearest dollar.

McEwan Industries sells on terms of 3/10, net 25. Total sales
for the year are $746,500; 40% of the customers pay on the
10th day and take discounts, while the other 60% pay, on
average, 52 days after their purchases. Assume 365 days in year for
your calculations.
What is the days sales outstanding? Round your answer to two
decimal places.
days
What is the average amount of receivables? Round your answer to
the nearest cent. Do not round intermediate...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 32 minutes ago

asked 59 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 3 hours ago

asked 3 hours ago

asked 3 hours ago