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    Receivables Investment & Cost of Trade Credit

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    Receivables Investment
    Medwig Corporation has a DSO of 17 days. The company averages $3,500 in credit sales each day. What is the company's average account receivable?

    Cost of Trade Credit
    What is the nominal and effective cost of trade credit under the credit terms of 3/15, net 30?

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    Solution Summary

    This solution explains how to calculate a company's average accounts receivable and the nominal and effective cost of trade credit in a fully formatted Word attachment.