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.