Question
Leyton Lumber Company has sales of $12 million per year, all on credit terms calling for payment within 30 days, and its accounts receivable are
Leyton Lumber Company has sales of $12 million per year, all on credit terms calling for payment within 30 days, and its accounts receivable are $1.62 million. Assume 365 days in year for your calculations.
What is Leyton's DSO? Do not round intermediate calculations.Round your answer to two decimal places. days
What would DSO be if all customers paid on time? Do not round intermediate calculations. Round your answer to two decimal places. days
How much capital would be released if Leyton could take actions that led to on-time payments? Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000. Do not round intermediate calculations. Round your answer to the nearest cent. $
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Financial Markets Instruments And Institutions
Authors: Anthony M. Santomero, David Babbel
2nd Edition
0072358688, 9780072358681
