Sway Tailors currently has credit terms of net 30, an average collection period of 29 days, and average receivables of $211,410. The firm estimates that if it offered terms of 2/10, net 30 that 45 percent of its customers would pay on Day 10 with the remainder paying on average in 32 days. How much cash could the company free up from its accounts receivables if it switched its credit policy? Multiple ChoiceO $65,009O $38,762 $58,336 ↓y Sway Tailors currently has credit terms of net 30, an average collection period of 29 days, and average receivables of $211.410. The firm estimates that if itoffered terms of 2/10, net 30 that 45 percent of its customers would pay on Day 10 with the remainder paying on average in 32 days. How much cash couldthe company free up from its accounts receivables if it switched its credit policy?Multiple Choice$65,009$38,762$58,336

The account receivables are also known as the debtors. These are the values due to a firm on which…

Answered: Sway Tailors currently has credit terms…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P

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Sway Tailors currently has credit terms of net 30, an average collection period of 29 days, and average receivables of $211,410. The firm estimates that if it offered terms of 2/10, net 30 that 45 percent of its customers would pay on Day 10 with the remainder paying on average in 32 days. How much cash could the company free up from its accounts receivables if it switched its credit policy?

Multiple Choice

O $65,009

O $38,762

$58,336

↓y

Sway Tailors currently has credit terms of net 30, an average collection period of 29 days, and average receivables of $211.410. The firm estimates that if it
offered terms of 2/10, net 30 that 45 percent of its customers would pay on Day 10 with the remainder paying on average in 32 days. How much cash could
the company free up from its accounts receivables if it switched its credit policy?
Multiple Choice
$65,009
$38,762
$58,336

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