Compute the level of the firm's accounts receivable Earth Corporation has DaysSales Outstanding (DSO) of 12.3days.Annual sales areexpected to be $6,125,000.Using a 365-day year, computethe level of the firm's accountsreceivable.

Explanation of Days Sales Outstanding (DSO): Days Sales Outstanding is a key financial metric that…

Answered: Earth Corporation has Days Sales…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 8CDQ

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Earth Corporation has Days Sales Outstanding (DSO) of 12.3 days. Annual sales are expected to be $6,125,000. Using a 365-day year, compute the level of the firm's accounts receivable.