Question

The income statement of Pratt Inc. reports net sales of $3,749.9 million for the current year. The balance sheet reports accounts receivable, net of $486.6 million at December 31 of the current year and $520.2 million at December 31 of the previous year. The days sales outstanding in the current year are:

Answer 1

Answer:

the Days sales outstanding is 49 days

Explanation:

The computation of the days sales outstanding is shown below:

Days sales outstanding is

= Average accounts receivable ÷ Credit sales × 365  days

= (($520.2 million + $486.6 million) ÷ 2) ÷ $3,749.9 million × 365  days

= 49 Days

hence, the Days sales outstanding is 49 days

We simply applied the above formula so that the correct value could come

And, the same is to be considered