4 POINTS Hendrix Corporation had annual sales of $75 million,which occurred evenly throughout the 365 days of theyear. Its accounts receivable balance averaged $3million.How long, on average, does it take the firm to collecton its sales?a) 14.6 daysb) 18.2 daysc) 16.5 daysd) 20.4 days

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

Answered: Hendrix Corporation had annual sales of…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 3P

See similar textbooks

Similar questions

Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35 days, and a payables deferral period of 25 days. Assume that cost of goods sold is 80% of sales. What is the length of the firm’s cash conversion cycle? If annual sales are $4,380,000 and all sales are on credit, what is the firm’s investment in accounts receivable? How many times per year does Negus Enterprises turn over its inventory?
Medwig Corporation has a DSO of 17 days. The company averages 3,500 in sales each day (all customers take credit). What is the companys average accounts receivable?
I need answer of this question
Collect on its sales ?
Collect on its sales ? General accounting
Assume the credit terms offered to your firm by your suppliers are 4/20, net 50. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 50. (Hint: Use a 365-day year.) The cost of trade credit is%. (Rounded to two decimal places.) ...
A firm has sales of $1.6 million, and 25 percent of the sales are for cash. The year-end accounts receivable balance is $175,000.What is the average collection period?
Get correct answer
A company has annual sales of $5,210,000 and its average daily accounts receivable is $377,000. What is the average days' sales in receivables? Assume 365 days per year.
A firm has sales of $1.4 million, and 10 percent of the sales are for cash. The year-end accounts receivable balance is $205,000. What is the average collection period? (Use 365 days in a year. Do not round intermediate calculation. Round the final answer to the 1 decimal place.) Average collection period days 76thjbnn
What is the DSO?
Baxley Brothers has a DSO of 23 days, and its annual salesare $3,650,000. What is its accounts receivable balance? Assume that it uses a 365-day year.

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

SEE MORE TEXTBOOKS

Hendrix Corporation had annual sales of $75 million, which occurred evenly throughout the 365 days of the year. Its accounts receivable balance averaged $3 million. How long, on average, does it take the firm to collect on its sales? a) 14.6 days b) 18.2 days c) 16.5 days d) 20.4 days