I need this question answer general accounting The Manana Corporation had annual sales of $60 million thatoccurred evenly throughout the 365 days of the year. Its accountsreceivable balance averaged $2 million. How long, on average,does it take the firm to collect on its sales?a. 12.2 days.b. 19.1 days.c. 15.8 days.d. 25.2 days.

Step 1: Identify the formula for DSO• DSO = Average Accounts Receivable / Average Daily SalesStep 2:…

Answered: The Manana Corporation had annual sales…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 3P

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The Manana Corporation had annual sales of $60 million that occurred evenly throughout the 365 days of the year. Its accounts receivable balance averaged $2 million. How long, on average, does it take the firm to collect on its sales? a. 12.2 days. b. 19.1 days. c. 15.8 days. d. 25.2 days.