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Bike World Company sells 5,000 bikes a year at an average price of $100 each. Assume that all sales are on credit under the terms
Bike World Company sells 5,000 bikes a year at an average price of $100 each. Assume that all sales are on credit under the terms 5/20, net 60; about 80 percent of the bikes were sold at discount because the buyers paid cash early enough. Assume all customers are smart and rational.
Bike World Companys average collection period or DSO (days sales outstanding) is likely to be
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