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Question: Radcliff Company's normal daily credit sales are $50,000. The average collection period is 30 days.

(a) What is the average accounts receivable that is reported on Radcliff's balance sheet?

(b) If Radcliff's opportunity cost is 10 percent, how much would the company save if the average collection period can be reduced to 20 days?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92293244

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