Scribd Logo
Upload

Welcome to Scribd!

  • Days Sales Outstanding

    Uploaded by

    GolamMostafa
    34 views1 page
    Days Sales Outstanding is a metric used to measure how quickly a company collects money from customers. It is calculated by taking the accounts receivable balance and dividing it by the average daily sales. For a company with $1.5 million in credit sales, $1 million in cash sales, $2.5 million in total sales, and $800,000 in accounts receivable for the month of November 2016 (31 days), their Days Sales Outstanding is calculated to be 16.5 days.

    Original Description:

    Original Title

    Days-Sales-Outstanding.xlsx

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Days Sales Outstanding is a metric used to measure how quickly a company collects money from customers. It is calculated by taking the accounts receivable balance and dividing it by the average daily sales. For a company with $1.5 million in credit sales, $1 million in cash sales, $2.5 million in total sales, and $800,000 in accounts receivable for the month of November 2016 (31 days), their Days Sales Outstanding is calculated to be 16.5 days.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    34 views1 page

    Days Sales Outstanding

    Uploaded by

    GolamMostafa
    Days Sales Outstanding is a metric used to measure how quickly a company collects money from customers. It is calculated by taking the accounts receivable balance and dividing it by the average daily sales. For a company with $1.5 million in credit sales, $1 million in cash sales, $2.5 million in total sales, and $800,000 in accounts receivable for the month of November 2016 (31 days), their Days Sales Outstanding is calculated to be 16.5 days.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Days Sales Outstanding Example

    For the month of November 2016:


    Credit Sales $1,500,000
    Cash Sales $1,000,000
    Total Sales Revenue $2,500,000

    Accounts Receivable Balance $800,000

    Number of Days in November 31

    Days Sales Outstanding 16.5

    You might also like