Lamar Lumber Company has sales of $12 million per year, all on credit terms calling for payment within 30 days; and its accounts receivable are $1.8 million. Assume 365 days in year for your calculations.
- What is Lamar's DSO? Round your answer to two decimal places. _________________days
- What would DSO be if all customers paid on time? Round your answer to two decimal places. ______________________days
- How much capital would be released if Lamar could take actions that led to on-time payments? Round your answer to the nearest cent. $ _______________