Operating cycle: All Stars, Inc., has inventory of $44,233 and cost of goods sold of $512,902. The company has an operating cycle of 74 days. What is the firm's days' sales outstanding (DSO)?

Name: Operating cycle: All Stars, Inc., has inventory of $44,233 and cost of goods sold of $512,902. The company has an operating cycle of 74 days. What is the firm's days' sales outstanding (DSO)?
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Question

Quizplus · Accepted Answer

DSO = (Inventory / COGS) * 365 / Operating Cycle= (44,233 / 512,902) * 365 / 74= 0.122 * 365 / 74= 43 days

Operating Cycle: All Stars, Inc