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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Question

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

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