Heaton Corp. sells on terms that allow customers 45 days to pay for merchandise. Its sales last year were $445,000, and its year-end receivables were $60,000. 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. A positive answer indicates late payments, while a negative answer indicates early payments.

Select the correct answer.

a. 11.37

b. 7.79

c. 4.21

d. 6.00

e. 9.58