Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 3/25, net 50. Based on experience, 80 percent of all customers will take the discount.
a. What is the average collection period? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Average collection period ________ days
b. If the company sells 1,340 forecasts every month at a price of $2,440 each, what is its average balance sheet amount in accounts receivable? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Average accounts receivable $ ____________