Mike purchases a new heavy-duty truck (5 year class recovery property)I for his delivery service on March 30.2019. No other asse
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<u>Solution and Explanation:</u>
The following formula is used in order to calculate the days sales outstanding:
Days sales out standing = ( Accounts receivable divided by Sales ) multiply with 365
= $1.5 million divided by $12 million multiply with 365
After calculating we get, 45.625 days
<u>In order to calculate the capital released, the following formula is used: </u>
= 513699
Therefore, the capital released is $513699