FINANCIAL ACCT-CONNECT
FINANCIAL ACCT-CONNECT
8th Edition
ISBN: 9781266627903
Author: Wild
Publisher: INTER MCG
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Hudson Drilling & Mining (HDM) currently generates $90,000 in annual credit sales. HDM sells on terms of net 45, and its accounts receivable balance averages $15,000. HDM is considering a new credit policy with terms of net 30. Under the new policy, sales will decrease to $85,000, and accounts receivable will average $17,000. Compute the days sales outstanding (DSO) under the existing policy and the proposed policy.
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FINANCIAL ACCT-CONNECT

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