IF A COMPANY HAS AVERAGE ACCOUNTS RECEIVABLE OF $72,000 AND ANNUAL SALES OF $960,000, WHAT IS THE DSO, ASSUMING A 360-DAY YEAR? A) 28 DAYS B) 35 DAYS C) 27 DAYS D) 45 DAYS
IF A COMPANY HAS AVERAGE ACCOUNTS RECEIVABLE OF $72,000 AND ANNUAL SALES OF $960,000, WHAT IS THE DSO, ASSUMING A 360-DAY YEAR? A) 28 DAYS B) 35 DAYS C) 27 DAYS D) 45 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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Transcribed Image Text:IF A COMPANY HAS AVERAGE ACCOUNTS
RECEIVABLE OF $72,000 AND ANNUAL
SALES OF $960,000, WHAT IS THE DSO,
ASSUMING A 360-DAY YEAR?
A) 28 DAYS
B) 35 DAYS
C) 27 DAYS
D) 45 DAYS
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