The Daisy Company had net credit sales of $880,000 for the year. Cash sales for the year were $1,140,000. Its receivables at the beginning of the year were $43,000 and at the end of the year they had increased to $76,000. The Daisy Company has credit terms of net 30 days. Compute the days' sales outstanding and evaluate the ratio as strong or weak. (Round any intermediary calculations to two decimal places and your final answer to the nearest day.) O A. Days' sales outstanding 25 days; strong B. Days' sales outstanding 11 days; strong OC. Days' sales outstanding 25 days; weak O D. Days' sales outstanding 11 days; weak
The Daisy Company had net credit sales of $880,000 for the year. Cash sales for the year were $1,140,000. Its receivables at the beginning of the year were $43,000 and at the end of the year they had increased to $76,000. The Daisy Company has credit terms of net 30 days. Compute the days' sales outstanding and evaluate the ratio as strong or weak. (Round any intermediary calculations to two decimal places and your final answer to the nearest day.) O A. Days' sales outstanding 25 days; strong B. Days' sales outstanding 11 days; strong OC. Days' sales outstanding 25 days; weak O D. Days' sales outstanding 11 days; weak
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Urmila
Transcribed Image Text:The Daisy Company had net credit sales of $880,000 for the year. Cash sales for the year were $1,140,000. Its
receivables at the beginning of the year were $43,000 and at the end of the year they had increased to $76,000. The
Daisy Company has credit terms of net 30 days. Compute the days' sales outstanding and evaluate the ratio as strong
or weak. (Round any intermediary calculations to two decimal places and your final answer to the nearest day.)
O A. Days' sales outstanding 25 days; strong
O B. Days' sales outstanding 11 days; strong
Days' sales outstanding 25 days; weak
OC.
O D. Days' sales outstanding 11 days; weak
***
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education