What would dso be if all customers paid on time

Reference no: EM131792884

Question: Leyton Lumber Company has sales of $10 million per year, all on credit terms calling for payment within 30 days; and its accounts receivable are $2 million. Assume 365 days in year for your calculations.

a. What is Leyton's DSO? Round your answer to two decimal places.
_______days?

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

c. How much capital would be released if Leyton could take actions that led to on-time payments? Round your answer to the nearest cent. Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000.
$ ________?

Reference no: EM131792884

Questions Cloud

What would be the right way to find the return : I know its a bit of a stupid question, but I started doubting myself yesterday. I need to find the expected 3 month returns, but I have weekly data.

Determine the total estimated uncollectibles : Ingles Company has accounts receivable of $93,100 at March 31. Determine the total estimated uncollectibles

Prepare the multi-step income statement : Prepare the Multi-step Income Statement, Statement of Stockholder's Equity, and Classified Balance Sheet under the Financial Statements

What is the market value of lawrence shares : Lawrence Industries' most recent annual dividend was $2.14per share (D0equals$ 2.14),and the firm's required return is 11%.Find the market value of Lawrence's.

What would dso be if all customers paid on time : Leyton Lumber Company has sales of $10 million per year, all on credit terms calling for payment within 30 days; and its accounts receivable are $2 million.

Write a research paper should be based on a topic discussed : Write a research paper should be based on a topic discussed in the course. The research paper requires at least five references.

Compute the initial outlay for each options : Jose Ricardo Marques from San Pedro, Brazil is a fourth generation coffee plantation grower. Jose's great grandfather, Manual, started with 1,000 acres.

What is the maximum height the ball will reach : Projectiles a ball thrown into the air from a building 100 ft high travels along a path described.

Calculate the cost of common equity : Maschale Corp. wants to issue bonds with a zero coupon bond, a face value of $1,000, and 12 years to maturity. Maschale estimates that the bonds will sell.

User Account

All Pages