Question
Deutsche Bearings has total sales of $9,941,987, inventories of $2,239,567, cash and equivalents of $799,034, and day's sales outstanding of 48 days. If the firm's
Deutsche Bearings has total sales of $9,941,987, inventories of $2,239,567, cash and equivalents of $799,034, and day's sales outstanding of 48 days. If the firm's management wanted its day's sales outstanding (DSO) to be 38 days, by how much will the accounts receivable have to change? Round your final answer to two decimal places. Hint: Use the given DSO to calculate the AR and work out the difference between the two AR.
A. -$272,383.21
B. $272,374.44
C. $272,109.23
D. -$272,109.23
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
9781266566899
