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asap A firm has annual sales of $150,000 and accounts receivable of $15,000. It gives its customers 35 days to pay. The industry average DSO
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A firm has annual sales of $150,000 and accounts receivable of $15,000. It gives its customers 35 days to pay. The industry average DSO is 25.5 days, based on a 365 day year. If the company changes its credit and collection policy sufficient to cause its DSO to fall to the industry average. and if it eams 10% on any cash freed-up by this change, how would that effect the firm's earnings, assuming other things are held constant Step by Step Solution
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