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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 $ $ $$$
And its receivables balances at the end of September
and October were:
September October
From Current Month $ $
From First Prior Month $ $
From Second Prior Month $ $
From Third Prior Month $ $
From All Other Months $ $
a Compute the firms traditional DSO at the end of September
and October using a day sales averaging period.
b Compute the firms ratios of receivables outstanding at the end
of September and October.
c Compute the firms salesweighted DSO at the end of September
and October.
d Compute the firms payment proportions for October
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