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A firm’s Days Sales Outstanding is 36.5 days. Its sales is $1,000,000. What is this firm’s...

A firm’s Days Sales Outstanding is 36.5 days. Its sales is $1,000,000. What is this firm’s Accounts Receivable balance (assume a 365 day year)?

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Expert Solution

DSO = Accounts receivable / Sales per day

36.5 = Accounts receivable / ($1,000,000 / 365)

Accounts receivable = 36.5 * $1,000,000 / 365

Accounts receivable = $100,000

jeff jeffy answered 2 years ago
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