Answered: Earth Corporation has Days Sales…

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.

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

Compute the level of the firm's accounts receivable

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.

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