CSI Lumber Company has sales of $10 million per year. All sales are on credit, calling for payment within 30 days, but not all their customers pay on time. Accounts receivable are too high; they are $2 million. The receivables reflect money the firm can't use yet. The firm has to borrow $2 million to finance the receivables. How much is the firm's DSO?

CSI Lumber Company has sales of $10 million per year. All sales are on credit, calling for payment within 30 days, but not all their customers pay on time. Accounts receivable are too high; they are $2 million. The receivables reflect money the firm can't use yet. The firm has to borrow $2 million to finance the receivables. How much is the firm's DSO?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 2P

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