General accounting solve question Western Gas & Electric Co.'s CFO has decided to takea closer look at the company's credit policy. WesternGas & Electric Co. has annual sales of $379.3 million,and it currently has an accounts receivable balanceof $46.3 million. The average Dso for Western Gas &Electric Co.'s industry is 51.2 days. Assuming that itssales stayed the same, what would be Western Gas& Electric Co.'s receivables balance if it maintainedthe industry average?

Step 1:- Define Days Sales OutstandingDays Sales Outstanding (DSO) estimates the average days…

Answered: Western Gas & Electric Co.'s CFO has…

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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Industry average?
Subject:- general accounting
Industry average? General accounting
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If a firm has sales of $25,689,00 a year, and the average collection period for the industry is 45 days, what should this firm's accounts receivable be in the firm is comparable to the industry?
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The accounts receivable turnover ratio of a company is 2; if its annual credit sales is $ 719550, what is the average value of outstanding credit (or value of accounts receivable)? If the company operates 355 a year, what is the average number of days it takes to get a credit sale paid? Average outstanding credit = $| (Round to TWO places of decimal) Average number of days to get payment on a credit sale =| (Round to the nearest integer)

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