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.
$ ________?