Ryngard Corp’s sales last year were $43,000 and it’s accounts recivable were $16,000. What was its Days Sales Outstanding ratio (DSO)? A.45 B.136 C.273 D.365

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Ryngard Corp’s sales last year were $43,000 and it’s accounts recivable were $16,000. What was its Days Sales Outstanding ratio (DSO)? A.45 B.136 C.273 D.365
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The question is related to Average Collection period. The Average Collection period or Days Sales Outstanding ratio (DSO) is calculated with the help of following formula 

Days Sales Outstanding Ratio = Average Receivables ÷ Credit Sales × 365 

 

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