Kyoto Joe, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 4/10, net 60....

Kyoto Joe, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 4/10, net 60. Based on experience, 50 percent of all customers will take the discount.

a.	What is the average collection period for the company? (Use 365 days a year. Do not round intermediate calculations.)
b.	If the company sells 1,220 forecasts every month at a price of $1,750 each, what is its average balance sheet amount in accounts receivable? (Use 365 days a year. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)

Expert Solution

jeff jeffy answered 2 years ago

Kyoto Joe, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 2/20, net 40.

Kyoto Joe, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 2/20, net 40. Based on experience, 60 percent of all customers will take the discount.a. What is the average collection period for the company?(Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)b. If the company sells 1,540 forecasts every month at a price of $1,320 each, what is its average balance sheet amount in accounts receivable?...

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