If a company has average accounts receivable of $60,000 and annualsales of $720,000, what is the DSO, assuming a 360-day year?

Explanation of Accounts Receivable:Accounts receivable refers to the money owed to a company by its…

Answered: If a company has average accounts…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 8CDQ

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Firm B has accounts receivable of $5,000,000 and annual sales of $9,000,000. What is the firm's days sales outstanding (DSO)? Assume a 365-day year.
Assume a firm has a cash cycle of 73 days and an operating cycle of 127 days.What is its payables turnover? (Use 365 days a year. Round your answer to 2 decimal places.)
What would be the annual percentage yield (APY) for a savings account that earned $174 on a balance of $3,250 over the past 365 days?
Assume a firm has a cash cycle of 54 days and an operating cycle of 77 days. What is its payables turnover? (Use 365 days a year. Round your answer to 2 decimal places.)
If a company has a cash cycle of 30 days and an operating cycle of 92 days, what is its average payment period?
If a firm has sales of $21,752,000 a year, and the average collection period for the industry is 45 days, what should this firm’s accounts receivable be if the firm is comparable to the industry? Assume there are 365 days in a year. Do not round intermediate calculations. Round your answer to the nearest dollar.
Use the "percent of sales method" of preparing pro forma financial statements to determine the projection for next year's accounts receivable. Make the following assumptions: current year's sales are $55,750,000; current year's cost of goods sold is $25,350,000; sales are expected to rise by 25%, The firm's investment in accounts receivable in the current year is $12,600,000. The firm's marginal tax rate is 35%. What is the projection for next year's accounts receivable? $10,320,000 $11,345,000 O $15,750,000 $8,772,000
Company’s average age of accounts receivable is 40 days, while the average age of accounts payable is 45 Its inventory turnover is 5.3 times. Assuming a 365-day year, what is the length of its cash conversion cycle?
MRK corporation has a DSO of 35 days. The company's annual credit sales are $10 million. What is the level of its accounts receivable? Assume there are 365 days in a year.? Group of answer choices $350 million $958, 904 $400 million $1,369, 863
Your company forecasts that next year's sales will be $78.00 million and the Days Sales Outstanding (DSO) ratio will be 24.84. What is the forecasted accounts receivable for next year? Note: your answer should in millions of dollars..
Assume the average management cost per account per year is $200 and the average fees earned per account per year is $170. The average annual size of account is $1800. What is the average implicit interest rate (round to two decimals)? Select one: a. 4.86% b. 1.67% c. 15% d. -1.67%
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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?