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Lamar Lumber Company has sales of $9 million per year, all on credit terms calling for payment within 30 days; and its accounts receivable are

Lamar Lumber Company has sales of $9 million per year, all on credit terms calling for payment within 30 days; and its accounts receivable are $2.25 million. Assume 365 days in year for your calculations. 1. What is Lamar's DSO? Round your answer to two decimal places. _________Days 2. What would DSO be if all customers paid on time? Round your answer to two decimal places. __________Days 3. How much capital would be released if Lamar could take actions that led to on-time payments? Round your answer to the nearest cent. $______________

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