Homework Answers
| Days Sales outstanding (DSO) = ( Accounts receivables / Credit sales ) * Days in a year = ( 660000 / 4910000 ) * 365 | 49 | days |
| Next year's credit sales = Current year's sales * ( 1 + % increase ) = 4910000 * ( 1 + 16% ) | 5695600 |
| Expected accounts receivables to carry = Desired DSO * Next year's credit sales / Days in a year = 30 * 5695600 / 365 | 468132 |
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