annual credit sales
Axis Wells and Excavation (AWE) currently generates $72,000 in annual credit sales. AWE sells on terms of net 50, and its accounts receivable balance averages $12,000. AWE is considering a new credit policy with terms of net 25. Under the new policy, sales will decrease to $68,000, and accounts receivable will average $13,600. Compute the days sales outstanding (DSO) under the existing policy and the proposed policy
annual credit sales