Medwig Corporation has a DSO of 22 days. The company averages $4,000 in sales each day...

Medwig Corporation has a DSO of 22 days. The company averages $4,000 in sales each day (all customers take credit). What is the company's average accounts receivable? Assume a 365-day year. Round your answer to the nearest dollar.

Expert Solution

DSO = Accounts Receivable / Credit Sales/Day

22 = Accounts Receivable / $4,000

Accounts Receivable = 22 * $4,000

Accounts Receivable = $88,000

jeff jeffy answered 2 years ago

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