Q3 a. Suppose a company offers credit terms of 2/10, net 30 to its customers. Past experience suggests that 55% of the firms customer base will pay within 10 days of the invoice date however the remainder will not pay until day 36. What is days sales outstanding (DSO) for the company.

b. Assuming that daily credit sales are $100,000 (net of all discounts), what would be the average accounts receivable on the firms books?

a. Suppose a company offers credit terms of 2/10, net 30 to its customers. Past experience suggests that 55% of the firm's customer base will pay within 10 days of the invoice date however the remainder will not pay until day 36. What is days sales outstanding (DSO) for the company. b. Assuming that daily credit sales are $100,000 (net of all discounts), what would be the average accounts receivable on the firm's books