Your boss has asked you to take a closer look at your company's credit policies. You...
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Your boss has asked you to take a closer look at your company's credit policies. You have been given the following information: Accounts receivable balance: Average daily sales: Weighted average cost of capital: 8% $695,000 $11,921 Your firm's days sales outstanding (DSO) is, Your boss is unhappy with your company's DSO and wants to bring it down to the industry average of 25 days. The marketing department told you that they expect sales to grow by 12% next year. This means that your company can expect to have an accounts receivable balance of next year. Your boss has asked you to take a closer look at your company's credit policies. You have been given the following information: Accounts receivable balance: Average daily sales: Weighted average cost of capital: 8% $695,000 $11,921 Your firm's days sales outstanding (DSO) is, Your boss is unhappy with your company's DSO and wants to bring it down to the industry average of 25 days. The marketing department told you that they expect sales to grow by 12% next year. This means that your company can expect to have an accounts receivable balance of next year.
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Answer rating: 100% (QA)
Days Sales Outstanding DSO provides a measure of the average number of days that a company takes to ... View the full answer
Related Book For
Financial Management Theory and Practice
ISBN: 978-0176517304
2nd Canadian edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
Posted Date:
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