Reston Inc

Multiple Choice

Reston Inc.'s annual sales normally equal $17,000,000. Ten (10) percent of Reston's sales are cash payments; the remaining 90 percent of sales are on credit, with 40 percent outstanding for 10 days, 30 percent outstanding for 20 days, 20 percent outstanding for 25 days, and 10 percent outstanding for 30 days. What is Reston's days sales outstanding (DSO) ?

A) 19.00 days
B) 18.00 days
C) 21.25 days
D) 17.00 days
E) 23.75 days