3. Accounts receivable

If a customer bought $200,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Osato Chemicals Inc. get from the customer?

$196,000

$165,000

$160,000

$180,000

If the customer paid off the account after 15 days, Osato Chemicals Inc. would receive .

Approximately 35% of Osato Chemicals Inc.s customers take advantage of the discount and pay on the 10th day. The remaining 65% take an average of 35 days to pay off their accounts. What is Osato Chemicals Inc.s days sales outstanding (DSO), or the average collection period?

28.88 days

26.25 days

22.31 days

24.94 days