Howe industries sells on terms of 210 net 40 gross sales


Howe Industries sells on terms of 2/10, net 40. Gross sales last year were $4.5 million, and accounts receivable averaged $437,500. Half of Howe’s customers paid on Day 10 and took discounts. What is the cost of trade credit to Howe’s non discount customers? (Hint: Calculate sales per day based on a 360-day year, get the average receivables of discount customers, and then find the DSO for the non discount customers.)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Howe industries sells on terms of 210 net 40 gross sales
Reference No:- TGS01092029

Expected delivery within 24 Hours