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3. Drake Paper Company sells on terms of “ net 30. ” The firm ’ s variable cost ratio is 0.80. a…. 1 answer below » 3. Drake Paper Company sells on terms of “net 30.” The firm’s variable cost ratio is 0.80. a. If annual credit sales are $20 million and its accounts receivable average 15 days overdue , what is Drake’s investment in receivables? b. Suppose that, as the result of a recession, annual credit sales decline by 10 per- • cent to $18 million, and customers delay their payments to an average of 25 days past the due& View complete question » 3. Drake Paper Company sells on terms of “net 30.” The firm’s variable cost ratio is 0.80. a. If annual credit sales are $20 million and its accounts receivable average 15 days overdue , what is Drake’s investment in receivables? b. Suppose that, as the result of a recession, annual credit sales decline by 10 per- • cent to $18 million, and customers delay their payments to an average of 25 days past the due date . What will be Drake’s new level of receivables investment? INTERMEDIATE INTERMEDIATE INTERMEDIATE View less » Jan 07 2016 10:51 AM
