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Problem 16-02 Receivables Investment Medwig Corporation has a DSO of 45 days. The company averages $7,250...

Problem 16-02
Receivables Investment

Medwig Corporation has a DSO of 45 days. The company averages $7,250 in sales each day (all customers take credit). What is the company's average accounts receivable? Round your answer to the nearest dollar.
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Answer #1
days of sales outstanding = number of days in a year/receivables turnover
45 = 365/Receivables turnover
Receivables turnover = 8.11
Receivables turnover = Credit sales/receivables
8.11 = 2646250/Receivables
Receivables = 326294.7
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