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A firm shows its working capital accounts as of the end of 2019 and 2020. Revenue for 2019 and 2020 was $8,000,000 and $7.500,000, respectively.
A firm shows its working capital accounts as of the end of 2019 and 2020. Revenue for 2019 and 2020 was $8,000,000 and $7.500,000, respectively. Cost of goods sold was $3.950,000 and $4,500,000, respectively. Accounts receivable was $635,000 and $545,000, respectively. Assume in general 80% of sales are made on credit was days sales outstanding in accounts receivable (DSO) reduced in 2020? O Yes, it reduced by about 4 days. No, it increased by about 4 days. No, it increased by about 3 days. O Cannot be determined with this information Yes, it reduced by about 3 days
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