Roberts manufacturing has never offered cash discounts to, Ask an Expert

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Roberts Manufacturing has never offered cash discounts to its customers before, but is considering it now. It currently sells on terms of net 50, and its days sales outstanding is 50 days. The new credit terms Roberts is considering are 1/15, net 30, Suppose that after instituting the new credit policy, Roberts sees that 40% of its customers take advantage of the discount and pay of the 15th day, while the remaining 60% don't take the discount and pay on the 50th day on average. What is Robert's new days sales outstanding (DSO)?

a. 15 days

b. 30 days

c. 36 days

d. 50 days

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91383415

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