Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Faldo Corp sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were $410,000, and its year-end receivables

image text in transcribed

Faldo Corp sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were $410,000, and its year-end receivables were $66,000. 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 Spaying 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. A positive answer indicates late payments, while a negative answer indicates early payments. Assume all sales to be on credit. Do not round your intermediate calculations. 0 O a. 38.79 days Ob. 25.03 days O c. 33.34 days d:6.88 days Oe. 13.76 days

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Alexander Hamilton On Finance Credit And Debt

Authors: Richard Sylla

1st Edition

0231174012, 978-0231184571

More Books

Students also viewed these Finance questions

Question

How to ignore deviant or inappropriate behavior .

Answered: 1 week ago