Calculate What is the firm's days sales outstanding from the following data?

Balance Sheet
Current assets
Cash 830,000
Acc receivable not given
Inventories 1,280,000
Fixed assets 3,830,000
TOTAL ASSETS 7,500,000

Current liabilities
Acc payable not given
Long-term debt 3,000,000
Common stock 1,050,000
Retained earnings 2,930,000
TOTAL LIAB and EQUITY 7,500,000

Income Statement
Sales 30,000,000
Operating expense 22,500,000
EBIT 7,500,000
Interest expense 420,000
EBT 7,080,000
Taxes 2,832,000
Net income 4,248,000

Answer rating: 100% (QA)

To calculate the days sales outstanding DSO we need to first determine the accounts rec... View the full answer