Greene Sisters has a DSO of 20 days. The company's average daily sales are $30,000. What is the level of its accounts receivable? Assume there are 365 days in a year. Round your answer to the nearest dollar.

Greene Sisters has a DSO of 20 days. The company's average daily sales are $30,000. What is the level of its accounts receivable? Assume there are 365 days in a year. Round your answer to the nearest dollar.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 3P

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

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