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Faldo Corp sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were $370,000, and its year-end receivables were
Faldo Corp sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were $370,000, and its year-end receivables were $67,000. If its DSO is less than the 45-day credit period, then customers are paying on time. Otherwise, they are paying late. By how much are customers paying early or late? Base your answer on this equation: DSO - Credit Period = Days early or late, and use a 365-day year when calculating the DSO
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