The firm's days sales outstanding (DSO) is 59.14 days. The Option 5 is correct.
What is the firm's days sales outstanding?
The firm's Days Sales Outstanding (DSO) is a financial metric that measures the average number of days it takes for a company to collect payments from its customers after a sale.
DSO = (Accounts Receivable / Net Sales) * 360
Accounts Receivable = 9,660
Net Sales = $58,800.0
DSO = (9,660.0 / 58,800.0) * 360
= 59.1428571429
= 59.14 days
Therefore, the firm's days sales outstanding (DSO) is 59.14 days.
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