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Medwig Corporation has a DSO of 34 days. The company averages $7,250 in sales each day...

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Finance

Medwig Corporation has a DSO of 34 days. The company averages$7,250 in sales each day (all customers take credit). What is thecompany's average accounts receivable? Round your answer to thenearest dollar.

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Information provided:

Days of sales outstanding= 34 days

Credit sales= $7,250

Days of sales outstanding= Average accounts receivable/ Credit sales

Average accounts receivable= Days of sales outstanding* Credit sales

                                                       = 34*$7,250

                                                       = $246,500.

Therefore, the company’s average accounts receivable is $246,500.

In case of any query, kindly comment on the solution.
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Medwig Corporation has a DSO of 34 days. The company averages$7,250 in sales each day (all customers take credit). What is thecompany's average accounts receivable? Round your answer to thenearest dollar.

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