Sierra Textiles has an accounts receivable balance of $150,000, and its annual credit sales are $1,200,000. What is the average collection period (days sales outstanding), assuming a 365-day year? a. 42.5 days b. 45.6 days c. 52.0 days d. 30.5 days

Sierra Textiles has an accounts receivable balance of $150,000, and its annual credit sales are $1,200,000. What is the average collection period (days sales outstanding), assuming a 365-day year? a. 42.5 days b. 45.6 days c. 52.0 days d. 30.5 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

provide correct answer

Sierra Textiles has an accounts receivable
balance of $150,000, and its annual credit
sales are $1,200,000. What is the average
collection period (days sales outstanding),
assuming a 365-day year?
a. 42.5 days
b. 45.6 days
c. 52.0 days
d. 30.5 days

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Thus Answer? ? General Accounting