m. If the company reduces its DSO without seriously affecting sales, what effect would this have on its cash position (1) in the short run and (2) in the long run?

Answer in terms of the cash budget and the balance sheet. What effect should this have on EVA in the long run?

In addition to improving the management of its current assets, SKI is also reviewing the ways in which it finances its current assets. With this concern in mind, Barnes is also trying to answer the following questions.