Question
1)For the Company XYZ, if Sales = $10,000,000; A/R = $2,000,000; DSO = ? If all customers paid on time within 30 days (assuming that
1)For the Company XYZ, if Sales = $10,000,000; A/R = $2,000,000; DSO = ?
If all customers paid on time within 30 days (assuming that it makes no sense for customers to pay earlier than 30 days), then the firms DSO = 30 days. If customers paid on time, whats the firms A/R? And how much cash will be freed up?
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
7th Edition
0357442040, 978-0357442043
