b) Medwing Corporation has a DSO of 19 days. The company averages 5,500 in credit sales each day. What is the company’s average accounts receivable? c) McDowell Industries sells on terms of 4/10, net 40. Total sales for the year are $825,500. Thirty percent of customers pay on the 15th day and take discounts; the other 70% pay, on average, 60 days after their purchases. a. What is the days sales outstanding? b. What is the average amount of receivables? c. What would happen to average receivables if McDowell toughened its collection policy with the result that all non-discount customers paid on the 40th day? Solve only B and C sub parts.

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Q: what were JT’s annual sales and DSO?

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A:

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A: Collection Period :— It is the average number of period to collect the receivables from customer.…

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Q: The Manning Company has financial statements as shown next, which are representative of the…

A: The following computations are done to check for external financing needs.