Compute the firm traditional DSO and aging fraction

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Reference no: EM133034141

Problem - A firm's sales (in BDT) have been as follows:

Month

January

February

March

April

May

Sales

4,000

9,000

26,000

32,000

17,000

Its receivables balances (in BDT) at the end of April and May were:

From Current Month

29,000

14,000

From First Prior Month

16,000

20,000

From Second Prior Month

4,000

12,000

From Third Prior Month

1,000

2,000

From All Other Months

0

0

Required - Compute the firm's traditional DSO and aging fraction at the end of May using a 120-day sales averaging period. Figure out the firm's ratios of receivables outstanding and sales-weighted DSO at the end of May. Calculate the firm's payment proportions for May.

Reference no: EM133034141

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