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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
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
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