What is the firm's days sales outstanding? Balance Sheet Current assets Cash 820,000 Acc receivable not...

   

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What is the firm's days sales outstanding? Balance Sheet Current assets Cash 820,000 Acc receivable not given Inventories 1,090, 000 Fixed assets 3,400,000 TOTAL ASSETS 6,800,000 Current liabilities Acc payable not given Long-term debt 2,000,000 Common stock 950,000 Retained earnings 3,390,000 TOTAL LIAB and EQUITY 6,800,000 Income Statement Sales 20, 400,000 Operating expense 16, 120,000 EBIT 4,280,000 Interest expense 280,000 EBT 4,000,000 Taxes 1,600,000 Net income 2,400,000 What is the firm's days sales outstanding? Balance Sheet Current assets Cash 820,000 Acc receivable not given Inventories 1,090, 000 Fixed assets 3,400,000 TOTAL ASSETS 6,800,000 Current liabilities Acc payable not given Long-term debt 2,000,000 Common stock 950,000 Retained earnings 3,390,000 TOTAL LIAB and EQUITY 6,800,000 Income Statement Sales 20, 400,000 Operating expense 16, 120,000 EBIT 4,280,000 Interest expense 280,000 EBT 4,000,000 Taxes 1,600,000 Net income 2,400,000

Answer rating: 100% (QA)

To calculate the firms Days Sales Outstanding DSO you need to use the following formula DSO Accounts ... View the full answer