How long on average does it take the firm to collect on sales? TICA Corporation had sales of$72 million this year. Its accountsreceivable balance averaged $2.4million. How long, on average,does it take the firm to collect onits sales?

To calculate the average collection period (also known as Days Sales Outstanding (DSO)), we use the…

Answered: TICA Corporation had sales of $72…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P

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TICA Corporation had sales of $72 million this year. Its accounts receivable balance averaged $2.4 million. How long, on average, does it take the firm to collect on its sales?