Your firm had net sales of $80,000, receivables of $20,000, and a cost of goods sold of $522,000 this past year. What were the days sales outstanding?

Question

Quizplus · Accepted Answer

Days sales outstanding (DSO) = (Accounts receivable / Net sales) x 365
DSO = ($20,000 / $80,000) x 365
DSO = 9.125 x 365
DSO = 3,326.625 or approximately 91 days

Therefore, the best choice is A) 91 days.

Your Firm Had Net Sales of $80,000, Receivables of $20,000