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RECEIVABLES INVESTMENT

Leyton Lumber Company has sales of $10 million per year, all on credit terms calling for payment within 30 days, and its accounts receivable are $1.5 million. Assume 365 days in year for your calculations.

1. What is Leyton's DSO? Round your answer to two decimal places. days _____
2. What would DSO be if all customers paid on time? Round your answer to two decimal places. days _____
3. How much capital would be released if Leyton could take actions that led to on-time payments? Round your answer to the nearest cent. Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000. $