Answered: If a company has average accounts…

If a company has average accounts receivable of $60,000 and annual sales of $720,000, what is the DSO, assuming a 360- day year? A) 20 days B) 25 days C) 30 days D) 35 days

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

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If a company has average accounts
receivable of $60,000 and annual sales of
$720,000, what is the DSO, assuming a 360-
day year?
A) 20 days
B) 25 days
C) 30 days
D) 35 days

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