Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 02, 2024

Data on Nathan Enterprises for the most recent year are shown below, along with the days sales outstanding of the firms against which it benchmarks.

Data on Nathan Enterprises for the most recent year are shown below, along with the days sales outstanding of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its receivables enough to reduce its DSO to the benchmarks' average. If this were done, by how much would receivables decline? Use a 365-day year.

Sales$110,000Accounts receivable$16,000Days sales outstanding (DSO)53.09Benchmark days sales outstanding (DSO)20.00a. $8,078b. $12,067c. $10,970d. $8,975

e. $9,973

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sam Bankman Fried

Sam Bankman Fried

Authors: Evelyn Everlore

1st Edition

979-8866401925

More Books

Students also viewed these Finance questions

Question

What determines the number of iPhones exported to France?

Answered: 1 week ago

Question

★★★★★

Harper is spending a three-day weekend at a beach property. Upon arrival, Harper bought a quart of ice cream and must divide consumption of the quart over each of the three days. Her instantaneous...

Answered: 1 week ago

Question

★★★★★

Data on Nathan Enterprises for the most recent year are shown below, along with the days sales outstanding of the firms against which it benchmarks. The firm's new CFO believes that the company could...

Answered: 1 week ago

Question

★★★★★

Jark Corporation has invested in a machine that cost $60,000, that has a useful life of six years, and that has no salvage value at the end of its useful life. The machine is being depreciated by the...

Answered: 1 week ago

Question

★★★★★

You plan to invest in securities that pay 8.0%, compounded annually. If you invest $5,000 today, how many years will it take for your investment to grow to $9,140.20? Using the information in the...

Answered: 1 week ago

Question

★★★★★

Creative Computing sells a tablet computer called the Protab. The $780 sales price of a Protab Package includes the following: One Protab computer. A 6-month limited warranty. This warranty...

Answered: 1 week ago

Question

★★★★★

Your Answer A review of the ledger of Sunland Corporation at its year end, July 31, 2021, produces the following unadjusted data for the preparation of annual adjusting entries: 1. 2. 3. 4. Prepaid...

Answered: 1 week ago

Question

★★★★★

As of January 1 , Year 1 , Braddock, a calendar - year, accrual - method corporation, had accumulated earnings and profits of $ 2 2 5 , 0 0 0 . For its Year 1 tax year, Braddock s books and records...

Answered: 1 week ago

Question

★★★★★

Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $3,100,000 and will last for six years. Variable costs are 35 percent of sales, and fixed...

Answered: 1 week ago

Previous Question Next Question