Person R and his brother person J planned to start a business of wholesale building supply. Term of sale is net 30 and the brothers are expected to 30% of the customers to pay on the 10 th day followed by the sale and 50% on the 40 th day, and 20% of the customers on 70 th day. Characters in the case: Person R Person J To determines: Average daily sales for the 1 st quarter and 2 nd quarter and for the full half year. And DSO at the end of the March and June. The indication about customers’ payment by DSO and whether DSO is a good management tool in the current case.

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Chapter 22, Problem 5MC

Summary Introduction

Case summary:

Person R and his brother person J planned to start a business of wholesale building supply.

Term of sale is net 30 and the brothers are expected to 30% of the customers to pay on the 10^th day followed by the sale and 50% on the 40^th day, and 20% of the customers on 70^th day.

Characters in the case:

Person R

Person J

To determines: Average daily sales for the 1^st quarter and 2^nd quarter and for the full half year. And DSO at the end of the March and June. The indication about customers’ payment by DSO and whether DSO is a good management tool in the current case.

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