Sterling Corp. has a Days Sales Outstanding (DSO) of 25 days. The company's average daily sales are $18,000. What is the level of its accounts receivable? Assume there are 365 days in a year. a. $360,000 b. $450,000 c. $525,000 d. $600,000

Sterling Corp. has a Days Sales Outstanding (DSO) of 25 days. The company's average daily sales are $18,000. What is the level of its accounts receivable? Assume there are 365 days in a year. a. $360,000 b. $450,000 c. $525,000 d. $600,000

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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What is the level of its account receivable? Given solution

Sterling Corp. has a Days Sales Outstanding (DSO) of 25 days. The company's
average daily sales are $18,000. What is the level of its accounts receivable?
Assume there are 365 days in a year.
a. $360,000
b. $450,000
c. $525,000
d. $600,000

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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