At the end of 2019, accounts receivable amounted to $173,000. At the beginning of the year it was $174,000. Net credit sales for the year amounted to $974,000 and net income was calculated to be $186,000.Determine the days sales outstanding ratio and the accounts receivable turnover ratio.Do not enter dollar signs or commas in the input boxes.Round your answer to 2 decimal places.Days Sales Outstanding = Answer days

To calculate the Days Sales Outstanding (DSO) and the Accounts Receivable Turnover Ratio, we first need to understand what these ratios represent.

1. Days Sales Outstanding (DSO) is a measure of the average number of days that it takes a company to collect payment after a sale has been made. It's calculated as:

   DSO = (Accounts Receivable / Net Credit Sales) x 365

2. Accounts Receivable Turnover Ratio measures how efficiently a business uses its assets. It's calculated as:

   Accounts Receivable Turnover Ratio = Net Credit Sales / Average Accounts Receivable

Let's calculate:

1. For DSO, we first need to calculate the average accounts receivable. This is done by adding the beginning and ending balances and dividing by 2. So, Average Accounts Receivable = ($174,000 +$173,000) / 2 = $173,500.

   Now we can calculate DSO = ($173,500 /$974,000) x 365 = 65.14 days (rounded to 2 decimal places)

2. For the Accounts Receivable Turnover Ratio, we use the same average accounts receivable. So, Accounts Receivable Turnover Ratio = $974,000 /$173,500 = 5.61 times (rounded to 2 decimal places)

So, the Days Sales Outstanding is 65.14 days and the Accounts Receivable Turnover Ratio is 5.61.