Jaminda's Holistic Healing has sales of $980,000, cost of goods sold of $765,250, and accounts receivable of $88,640.How long on average does it take the firm's customers to pay for their purchases? Assume a 365-day year.
A)8.63 days
B)15.5 days
C)32.56 days
D)33.01 days
E)42.56 days

Question

Quizplus · Accepted Answer

Days Sales Outstanding (DSO) = (Average Accounts Receivable / Sales) * 365 days= (88,640 / 980,000) * 365 days= 33.01 days

Jaminda's Holistic Healing Has Sales of $980,000, Cost of Goods