A company has the following information for 2014 and 2015:

2014 2015

Days Sales Receivable (DSR) 35 days 32 days

The company also has credit terms for receivables of 2/10, n/30. Given this information which statement would be most accurate?

		The decrease in DSR indicates improvement in long-term solvency or the company's ability to repay long-term debt.
		receivables
		The decrease in DSR indicates a decline in the company's short-term solvency, but they are still collecting faster than the credit policy terms.
		The change in DSR indicates profitability for this company.