Pacific Trading offers customers 30 days to pay for merchandise. Its annual credit sales were $850,000, and year-end receivables were $95,000. If its DSO is less than the 30-day credit period, then customers are paying on time. Otherwise, they are paying late. By how many days are customers paying early or late?

Pacific Trading offers customers 30 days to pay for merchandise. Its annual credit sales were $850,000, and year-end receivables were $95,000. If its DSO is less than the 30-day credit period, then customers are paying on time. Otherwise, they are paying late. By how many days are customers paying early or late?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 9P: Grunewald Industries sells on terms of 2/10, net 40. Gross sales last year were 4,562,500 and...

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