Awe is considering a new credit policy with terms of net 25, Finance Basics

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Awe is considering a new credit policy with terms of net 25

Axis Wells and Excavation (AWE) currently generates $72,000 in annual credit sales. AWE sells on terms of net 50, and its accounts receivable balance averages $12,000. AWE is considering a new credit policy with terms of net 25. Under the new policy, sales will decrease to $68,000, and accounts receivable will average $13,600. Compute the days sales outstanding (DSO) under the existing policy and the proposed policy

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Finance Basics: Awe is considering a new credit policy with terms of net 25

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