Answered: Bright wave Ltd. has a Days Sales…

Bright wave Ltd. has a Days Sales Outstanding (DSO) of 20 days. The company's average daily sales are $40,000. Assume there are 365 days in a year. What is the level of its accounts receivable?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1P: Greene Sisters has a DSO of 20 days. The companys average daily sales are 20,000. What is the level...

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Question

What is the level of its accounts receivable on these general accounting question?

Bright wave Ltd. has a Days Sales Outstanding
(DSO) of 20 days. The company's average daily
sales are $40,000. Assume there are 365 days in a
year. What is the level of its accounts receivable?

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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