The daisy company had net credit sales of $830,000 for the year. cash sales for the year were $1,170,000. its receivables at the beginning of the year were $45,000 and at the end of the year they had increased to $90,000. the daisy company has credit terms of net 30 days. compute the days' sales outstanding and evaluate the ratio as strong or weak. (round any intermediary calculations to two decimal places and your final answer to the nearest day.)

The days' sales outstanding is 29.68 days and we assume it is a weak ratio

Explanation:

In this question, we need to use the formula of the days' sales outstanding which is presented below:

= (Average accounts receivables ÷ Net credit sales) × total number of days in a year

where,

Average accounts receivables = (Beginning account receivable + ending account receivables) ÷ 2

= ($45,000 + $90,000) ÷ 2

= $67,500

And, the net credit sales is $830,000

Now put these values to the above formula  

So, the value would equal to

= ($67,500 ÷ $830,000) × 365 days

= 29.68 days

It shows same so we assume it is a weak ratio

yup the answer is

750 h and costs $0.60 per bulb.