Question

Figure Four has Days Sales Outstanding (DSO) of 25.00 days. The company policy is for DSO...

Figure Four has Days Sales Outstanding (DSO) of 25.00 days. The company policy is for DSO to run at 30.00 days on average. Sales are $2,214,000.00 for the past year.

What is the current average accounts receivable?

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Answer #1

Current accounts receivable = Sales/365 x Current Days Sales Outstanding

                                        = 2,214,000/365 x 25

                                        = $151,643.84

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