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A firm s sales have been as follows: Month June July August, September,October Sales $ 5 , 0 0 0 $ 1 0 , 0

A firms sales have been as follows:
Month June July August, September,October
Sales $5,000 $10,000 $25,000,$35,000,$20,000
And its receivables balances at the end of September
and October were:
September October
From Current Month $32,000 $17,000
From First Prior Month $15,000 $21,000
From Second Prior Month $3,500 $12,000
From Third Prior Month $500 $1,500
From All Other Months $0 $0
a. Compute the firms traditional DSO at the end of September
and October using a 90-day sales averaging period.
b. Compute the firms ratios of receivables outstanding at the end
of September and October.
c. Compute the firms sales-weighted DSO at the end of September
and October.
d. Compute the firms payment proportions for October
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