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

If a company has average accounts receivable:60000

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

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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