Delta Distributors Has an Investment in Accounts Receivable of $2,750,000

question 48

Multiple Choice

Delta Distributors has an investment in accounts receivable of $2,750,000.Daily credit sales are $118,280.If 30% of Delta's credit customers receive a discount by paying within 10 days and the remainder of Delta's customers pay in 40 days, what is the net period that Delta maintains?

• A)19 days
• B)31 days
• C)37 days
• D)40 days
• E)None of the above.

Comprehend the challenges and strategies in managing assets for international companies.

Understand the concept of financial leverage and its effects on a company's financial flexibility and shareholder return.

Recognize the importance of financial planning, control, and the forecasting process in corporate finance.

Understand the financial instruments and strategies used by companies for raising funds and returning profits to shareholders.

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