Any Accountants Here?

[MyiBill]

So Im reviewing a sample problem for a final exam tomorrow and it mentions that days sales outstanding is 45 days but doesn't mention what accounts receivables are, only that at the start of the year accounts receivable was $75 million.

 

[mobilehaathi]

You haven't asked a question. (Other than "Any accountants here?")

 

[sahnert]

So Im reviewing a sample problem for a final exam tomorrow and it mentions that days sales outstanding is 45 days but doesn't mention what accounts receivables are, only that at the start of the year accounts receivable was $75 million.

I'm not an accountant, but I believe that refers to the outstandinging amount that is owed to the company.

Example: I sent you a bill for $100, but you haven't paid it yet. My accounts receivable is now $100 until you pay me.

 

[MyiBill]

You haven't asked a question. (Other than "Any accountants here?")

Oh sorry ha, I was kind of trying to figure out the days sales outstanding part heres the full question:

Cash Budgeting
XYZ Co. has estimated sales (in millions) for the next four quarters as follows:
Q1 Q2 Q3 Q4
Sales $165 $190 $215 $160
Sales for the first quarter of next year are expected to equal $170 million. Accounts receivable at the start of this year were $75 million. Days Sales Outstanding in Pride Inc is 45 days.
XYZ Co. purchases from supplier in a quarter ordinarily equal 45% of the next quarter’s forecasted sales. Suppliers are paid in the next quarter. Wages, taxes and expenses equal about 25% of sales and are paid in the quarter they are incurred. Interest and dividends are about 12 million per quarter.
Pride, Inc. plans a major capital outlay in the second quarter equal to 75 million. Finally, the company began the year with a 49 million cash balance and wishes to maintain a 30 million minimum cash balance.
Set up the company’s cash budget for the four quarters of this year.

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I'm not an accountant, but I believe that refers to the outstandinging amount that is owed to the company.

Example: I sent you a bill for $100, but you haven't paid it yet. My accounts receivable is now $100 until you pay me.

Sorry should have been more clear, I got that part but my problem doesn't mention how many sales are outstanding for that time and I'm not sure if theres a way to estimate it, I posted the full problem.

 

[turtle777]

Oh sorry ha, I was kind of trying to figure out the days sales outstanding part heres the full question:

Cash Budgeting
XYZ Co. has estimated sales (in millions) for the next four quarters as follows:
Q1 Q2 Q3 Q4
Sales $165 $190 $215 $160
Sales for the first quarter of next year are expected to equal $170 million. Accounts receivable at the start of this year were $75 million. Days Sales Outstanding in Pride Inc is 45 days.

I'm still confused about this. What company are we talking about ? XYZ CO. or Price Inc. ?

-t

 

[MyiBill]

I'm still confused about this. What company are we talking about ? XYZ CO. or Price Inc. ?

-t

Sorry they're the same company ha bad editing. Assume every company is XYZ Co.