eBook

Leyton Lumber Company has sales of $10 million per year, all on credit terms calling for payment within 30 days, and its accounts receivable are $1.95 million. Assume 365 days in year for your calculations.

What is Leyton's DSO? Do not round intermediate calculations.Round your answer to two decimal places. _____days

What would DSO be if all customers paid on time? Do not round intermediate calculations. Round your answer to two decimal places. _______days

How much capital would be released if Leyton could take actions that led to on-time payments? Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000. Do not round intermediate calculations. Round your answer to the nearest cent. $ ______