Need help calculating the days sales outstanding picture are below Highland Prod

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Need help calculating the days sales outstanding picture are below
Highland Products reported the following amounts in its 2019 financial statements. The 2018 amounts are given for compa EEB (Click the icon to view the financial data ) Read the requirements Requirement 1. Compute Highland's quick (acid-test) ratio at the end of 2019. Round to two decimal places. How does th Begin by selecting the formula, then enter the amounts and compute the quick (acid-test) ratio. (Abbreviation used: Cash Cash Short-term investments+Net current receivables Total current liabilitiesQuick (acid-test) ra 101,050 107,500 0.94 How does the quick (acid-test) ratio compare to the industry average of 0.92? Highland's position is favorable compared to the industry average of 0.92 Requirement 2. Compare days' sales outstanding for 2019 with the company's credit terms of net 30 days Begin by selecting the formula, then enter the amounts to calculate the days' sales outstanding. (Round interim calculation 365 days Accounts receivable turnover 79,000 Days' sales outstanding 1217 days 365

Explanation / Answer

To calculate Days sales outstanding we will first calculate Accounts receivable turnover

Accounts receivable turnover=Sales/Average Receivables

Accounts receivable turnover=686000/((72600+64600)/2)

Accounts receivable turnover=686000/68600

Accounts receivable turnover=10 times

Now that we have calculated Accounts receivable turnover we can find out Days sales outstanding

Days sales outstanding= 365 days/Accounts receivable turnover

Days sales outstanding= 365/10

Days sales outstanding= 36.5 days

Net value of Acounts receivable is taken.

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