Lamar could take actions that led to on-time payments

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Reference no: EM132046289

The Cash Conversion Cycle Receivables investment Lamar Lumber Company has sales of $8 million per year, all on credit terms calling for payment within 30 days; and its accounts receivable are $1.2 million. Assume 365 days in year for your calculations.

What is Lamar's DSO? Round your answer to two decimal places. ________ days

What would DSO be if all customers paid on time? Round your answer to two decimal places. ____________ days

How much capital would be released if Lamar could take actions that led to on-time payments? Round your answer to the nearest cent. $ ________.

Reference no: EM132046289

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