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UNIT 7 ASSICNMENT GUIDELINES You will calculate days sales outstanding, days inventory outstanding, days payables outstanding, and the cash conversion cycle for specified companies. You

UNIT 7 ASSICNMENT GUIDELINES
You will calculate days sales outstanding, days inventory outstanding, days payables outstanding, and the cash conversion cycle for
specified companies. You will also conclude the characteristics of a good cash conversion cycle.
Problem 1: Devin's Long Boards is a retailer that offers credit to customers. Devin often sells inventory to customers on account with the
agreement that these customers will pay for the merchandise within 30 days. Some customers promptly pay for their goods, while others
are delinquent. Devin's year-end financial statements list the following accounts:
Accounts Receivable: $15,000
Net Credit Sales: $175,000
REQUIRED: Compute the number of days sales outstanding (DSO) for Devin's Long Boards. Assume 365 days in a year.
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