Provide solution Harbor Enterprises has a net income of $210,000, aprofit margin of 9.1%, and an accounts receivablebalance of $145,500. Assuming 75% of sales are oncredit, what are the company's days' sales inreceivables?

We calculate days' sales in receivables using the days sales outstanding (DSO) formula: DSO=(Credit…

Answered: Harbor Enterprises has a net income of…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P

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Harbor Enterprises has a net income of $210,000, a profit margin of 9.1%, and an accounts receivable balance of $145,500. Assuming 75% of sales are on credit, what are the company's days' sales in receivables?