AFP
CTP · Question #459
(Topic 5) The company's monthly credit sales are in Table 1 and its receivables collection pattern is in Table 2. If this company wishes to achieve a second quarter (April-June) DSO of 60 days, what…
The correct answer is B. $1,333,333. See the full explanation below for the reasoning.
Question
- (Topic 5)
The company's monthly credit sales are in Table 1 and its receivables collection pattern is in Table 2. If this company wishes to achieve a second quarter (April-June) DSO of 60 days, what would its ending accounts receivable balance need to be? Assume a 90-day quarter.
Options
- A$666,667
- B$1,333,333
- C$1,500,000
- D$3,000,000
How the community answered
(35 responses)- A6% (2)
- B80% (28)
- C11% (4)
- D3% (1)
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