Homework Answers
| Days Sales outstanding (DSO) = ( Accounts receivables / Credit sales ) * Days in a year = ( 715000 / 4650000 ) * 365 | 56 | days |
| Next year's credit sales = Current year's sales * ( 1 + % increase ) = 4650000 * ( 1 + 12% ) | 5208000 | |
| Expected accounts receivables to carry = Desired DSO * Next year's credit sales / Days in a year = 30 * 5208000 / 365 | 428055 |
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