Tune is a retailer. In a given trading period his purchases were $629,800, less purchase returns of $9,300. During the trading period, the average amount he owed to creditors was $26,350.
(a) Calculate the average credit taken by the retailer, in days.
(b) Give a brief explanation of the average credit taken by the retailer.
During the trading period, the average credit given by Tune to his debtors was 20 days, and the average money owed to him by his debtors was $45,000. His sales, before deducting sales returns, were $832,800, and his overhead expenses were $98,550.
(c) Calculate:
(i) his net sales for the period
(ii) his sales returns for the period
(iii) his ratio for overhead expenses to net sales during the period.