1. Delta Distributors has accounts receivable of $2,750,000 and average daily credit sales of $118,280. The firm offers credit terms of 2/10, net 30. On average, what is the firm’s accounts receivable period?
20.00 days
23.25 days
19.47 days
37.14 days
18.64 days
2. Tiffany’s had a beginning accounts payable balance of $42,900 and an ending accounts payable balance of $44,800. Sales for the period were $770,000 and costs of goods sold were $598,000. If the operating cycle is 129 days, how long is the firm’s cash cycle?
79.35 days
107.78 days
81.19 days
102.24 days
97.13 days