(The Following Information Applies to Problems 110 Through 127

question 2

Multiple Choice

(The following information applies to Problems 110 through 127.)
The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
-What is the firm's days sales outstanding? Assume a 365-day year for this calculation.

• A) 39.07
• B) 41.13
• C) 43.29
• D) 45.57
• E) 47.97

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Definitions:

Office Salaries Expense

An account that records the total salary expenses for office employees over a certain period.

Travel Expense

Costs associated with traveling for the purpose of conducting business, including transportation, lodging, and meals, which are often reimbursable by an employer.

Capital Expenditure Budget

The capital expenditure budget outlines planned investments in long-term assets, including equipment, property, and other significant infrastructure projects.

Minimum Cash Balance

The smallest amount of cash that a company decides to hold in its accounts to ensure liquidity and smooth operations.