Find the average cash balance based on Miller—Orr model, if a firm maintains a minimum cash balance of Rs 5,000, variance of daily cash balance is Rs 1,000, conversion cost is Rs 20, and the interest...

Find the average cash balance based on Miller—Orr model, if a firm maintains a minimum cash balance of Rs 5,000, variance of daily cash balance is Rs 1,000, conversion cost is Rs 20, and the interest rate per annum is 10%.

A net 30 term accounts for a sale of Rs 20,00,000. There are 20% of the customers who do not make payments in time. Find out the average collection period and the average size of receivables.